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Buy & Hold
The 1% Rule — cashflow through long-term rental income
The foundational strategy: acquire a property that rents for at least 1% of its purchase price per month, hold for 5+ years, and collect cashflow while the mortgage amortizes and the market appreciates.
Gross monthly rent divided by purchase price
Net operating income ÷ property value
Annual pre-tax cashflow ÷ total cash invested
NOI ÷ annual debt service
Look in B- and C-class neighborhoods with strong employment anchors. Zip codes near hospitals, distribution centers, and manufacturing corridors often clear the 1% rule. Filter our search to only show 1% Rule-qualified listings.
Use the property detail page to see the verdict rail — cap rate, cash-on-cash, and cashflow are calculated live using current financing assumptions. Toggle down payment and interest rate in the calculator tab to stress-test.
Always order a general inspection, sewer scope, and termite report before closing. Factor major repairs into your initial rehab budget. We assume a 5% capex reserve in the verdict.
Self-manage the first unit to learn the business. Once you have 3-4 units, hire a professional property manager (8-10% of gross rent). Use the saved cashflow to fund your next down payment.