The one percent rule refers to the rent to cost ratio a single family rental investment property must have in order to be profitable as a rule of thumb. While there are a number of expenses to keep in mind, the monthly rent on an investment property must be at least 1% of the total purchase cost to have a positive ROI and be considered a favorable investment asset. In more distressed times we have also experienced common use of the “2% rule.”

Full Glossary

If after learning a bit more about The 1% Rule you are curious to see how your current Investment Portfolio would benefit from performing a 1031, then I recommend signing up to receive a FREE 1031 Sizing from Conatus.

This sizing gives you info about the value of replacement properties you need to purchase and the amount of related debt on this purchase to fully defer your capital gains associated tax liability.

As an added benefit you will receive a comparison of your current income vs potential replacement property income that includes an assessment of income tax benefit between the
two.

The Conatus 1031 Sizing is your blueprint for how to maximize cash flow from trading your equity for a multiple on income.

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