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Of course , the exact expenses will vary based on the property. When you are determining where to invest, you might need to look beyond your zip code or even state lines to find an affordable property with exciting returns. However , the decision to invest in a particular area is entirely up to you.
For example , if you buy a property for an all-in cost of $100, 000, then you should be able to rent it for at least $1, 000 per month. Check the market rental rates in your area to see if the 1% is realistic in your area. In some cases, you might be able to stretch your rental income to obtain a 2% rule.
Some people make detrimental errors in this step by mistaking stock price with the number of shares. As you get your feet wet, exercise caution along the way. You’ll get more comfortable as you work through more deals. If you want to start with something extremely manageable, then try renting out a room in your current home. You can gain experience as a landlord and create extra income without taking on the responsibility of an entirely new property.
In high cost of living areas, you might not be able to come close to the 1% rule. learn the basics of personal finance, then please read our ultimate guide.
Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication. We are an independent, advertising-supported comparison service. Check the stock price then indicate the number of shares you want to buy.