1% RULE + DEMAND As a REALTOR® in Beaverton, Oregon, investment buyers are consistently asking me if a property passes the 1% rule. What is the 1% rule you ask? The 1% rule, once considered the gold standard and top priority, measures the price of the potential investment property against the gross income it will generate. To pass the “test,” its monthly rent must be equal to or no less than 1% of the purchase price. But here’s the hard truth: location still reigns supreme. You can pass the 1% rule all day but the best property in the wrong location really isn’t the best property now, is it? If rental demand/vacation appeal is low or in a less competitive market, it will be hard to recoup any renovation costs as well as keep it rented for top dollar. Buying an investment property can be a great decision, and I will help you do it right.
LANDLORD-FRIENDLY LAWS The majority of investors that we are working with are focused on building large, cash-flowing portfolios in Connecticut. The investor base is primarily from New York and New Jersey. They are travelling across state lines for a higher return on their investments, coupled with more landlord-friendly regulations. Due to high appreciation, low cap rates, rent control, and lengthy eviction processes in New York and New Jersey, investors are highly motivated to acquire assets in Connecticut. The demand for multifamily property is so great that closings are happening with per unit prices at unprecedented highs. The investors are acquiring assets for long term holds and are infusing capital into the assets upon closing to enhance the quality of the product and increasing rents.
CLOSINGS ARE HAPPENING WITH PER UNIT PRICES AT UNPRECEDENTED HIGHS.
HERE’S THE HARD TRUTH: LOCATION STILL REIGNS SUPREME.
Lisa Cozzi Berkshire Hathaway Glastonbury, CT Connect with Lisa
Donna Meeuwsen Topography Real Estate Tigard, OR Connect with Donna
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