Strategies
1% Rule
Rule of thumb: monthly rent should equal at least 1% of purchase price. A 5-second screening filter, not a verdict.
Example
A $200,000 property should rent for at least $2,000/mo to clear the 1% rule.
Why 1% Rule matters
The 1% rule is a back-of-napkin filter for triage. It's gotten harder to hit in most markets since 2020 — many strong cash-flow markets are 0.6–0.8% now. Use it to sort listings, not to make decisions.
How to check 1% Rule before you rely on it
Use it only to sort, and check the two inputs behind it. Confirm the rent with current comparable leases for the same bedroom count and condition, not the listing's pro-forma figure, and use the price you would actually offer rather than the asking price. A property that passes the rule can still lose money once taxes, insurance, and reserves are real, so move every candidate that clears the screen into a full cash-flow analysis before you write an offer.
Related terms
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Where 1% Rule shows up in TrueCap
A strategy sets which inputs the analyzer asks for and which outputs lead the results view. The core buy-and-hold flow is what every free analysis runs; specialist flows reuse the same engine and the same labeled assumptions, so a number that appears in two strategies was computed the same way in both.