Re: Whatever happened to the 1% rule? - Posted by Alexander Manuel
Posted by Alexander Manuel on June 30, 2003 at 09:03:31:
If you work with Section 8 tenants, you will never have a shortage of applicants lining up. All of my units in Miami, Homestead & Fort Pierce are fully rented, and I’m still getting calls from people looking for housing.
The only drawback I’ve had working with Section 8 is that you will have a 30-day vacancy rate up front due to the time it takes them to receive the packet, review the paperwork, schedule the inspection, complete rent survey, etc… Other than that, it’s been pretty good.
As for the 1% rule, I use it as a baseline for my low income properties. I average about 1.5% on my properties, and tend to walk away from properties priced such that I can’t even hit the 1% mark (low income of course). Each time interest rates drop the asking price for property goes up, and rents in general just haven’t caught up yet.