Tips for Investing in Multi- Family Properties
HI! My name is Michael Zubretsky. I am the owner of Venture One Realty and have some useful tips for you if you are thinking about investing in Real Estate. The 1% Rule can be useful for evaluating Real Estate Investments. With some quick and easy calculations, Investors can easily screen rental properties to determine the Cash Flow Potential of a particular property. This rule is used to determine if the monthly rent earned from an investment property will exceed the property’s monthly mortgage payment.
MONTHLY RENTAL INCOME > ONE PERCENT OF THE PURCHASE PRICE
For example – A property that costs $200,000 should have rental income of at least $2,000 per month.
1% x $200,000 = $2,000 per month Rental Income
Conversely – If you know that the monthly rent on a property is $2,000 then you can quickly calculate the Maximum Purchase Price.
100 x Monthly Rent = Max Purchase Price
100 x $2,000 = $200,000
Using this quick calculation, you have created an instant guideline where you now know that you can not pay more than $200,000 on this investment property without investigating other fundamental features during your due diligence.
The One Percent Rule in Real Estate Investing can be a helpful tool when you are evaluating cash flow potential, but it is only the first step in determining whether a property is a good investment.
Please feel free to contact me with any questions you may have so that I may help you in the purchase of a home.
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About Venture One Realty, llc.
Venture One Realty has recognized that Connecticut Homeowners need and want a way to keep more of their hard earned equity when selling their home. Our Clients save Thousands of Dollars without sacrificing the services that are critical to maximizing the sale price of their home. We offer all the same MLS exposure, marketing tools, technology, quality of service, expertise, and personal attention as the Other Realty Companies but without the costly Real Estate Commission. You pay only 1%.
We are a full service Real Estate Agency that will manage the entire home selling process from listing to closing. You get everything you would expect from a traditional Real Estate Agent but with the added benefit of working with a technology enabled and customer focused team of Agents. Our results speak for themselves.
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