1% rule may be a big factor in RE investment decision making. but one shouldn't limit to it. here is why.
天时(when): 1% rule will vary during market cycle.
地利(where): RE is local. so is 1% rule.
人和(who): landlord, tenant and property management team, including PM, attorney, accountant, contractor,etc., all count in successful RE business. somebody will easily achieve 1% goal while others struggle.
Bottom line: right people are doing right things at right time. and DO THINGS RIGHT.
Just my 2 cents. 请拍砖.
大顶! thanks for sharing. 同时, 请教各位大师: 1% rule
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谢谢美西!但不是太懂 你1% rule的意思,类似于20/80rule?
-万枫-
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08/02/2009 postreply
10:51:54
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no, it refers to P/MR< 100 or MR/P > 1%
-美西游子-
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08/02/2009 postreply
10:57:37
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so it is a 延伸 of cap rate
-万枫-
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08/02/2009 postreply
11:03:00
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it is 12% cap rate if you define the income the same way
-万枫-
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08/02/2009 postreply
11:06:54