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If you’re getting started in real estate investing, you NEED to know about some of the beginner “real estate rules of thumb.” These rules can help you quickly calculate whether or not a rental property or house flip may be worth buying, but are NOT the final calculations before buying the deal. You may have heard of a few of these—the 1% rule, the 50% rule, and now a new rule for 2024…the 10% target!
With the 10% target, you get the best of all these rules rolled into one. Except, the 10% target doesn’t just account for rent or cash flow—it factors in ALL the potential profit, so you can make the best decision possible before you buy a deal. If your deal meets or exceeds the 10% target, then you may have a home run deal on your hands that’ll beat out most other investments. Stick around because we’re going to explain exactly how to calculate it.
00:00 Real Estate Rules of Thumb
00:34 Sponsor: Rent to Retirement!
01:43 The 1% Rule
03:02 The 50% Rule
03:44 The 70% Rule
03:56 Do These "Rules" Still Work?
04:38 The 10% Target
06:17 Why 10%?
09:46 Real 10% Target Example
13:02 Would You Use It?