THE
1% INVESTING RULE
THINKING
ABOUT INVESTING IN DAYTON RENTAL PROPERTY ?
Dayton,
Ohio is one of the most profitable areas in the country to own rental property.
Part of this is due to having the Wright Pat Air Force Base located in the
heart of Dayton. The return on the investment is almost double what it would be
in most cases when you compared to a big city. When thinking about investing in
a rental property you need to evaluate a few common obvious issues. These
consist of price, condition, and location of the home. The typical rule I stick
with when advising my clients is what I call the “1% rule.” In short, when
investing in a Dayton, OH rental property you want the total return on
investment to be greater than 1% of the purchase price.
Example:
If
you buy a property for $75,000 and can rent the home out for $1,100 a month.
After subtracting taxes, insurance, and repairs from the $1,100 you come out
with a net of $850 per month. Your return on your investment in this example
would be at 1.2% per month. In this scenario I would advise my client to buy
the home as it is greater than a 1% return on investment per month.
If
you would like to discuss this concept further or have any questions please
feel free to contact me at anytime. Take advantage of the Dayton market today
and invest in property!
Blog
Written By:
Ryan
Gillen
(937)673-0830
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