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30 June, 21:53

Using the 1% rule-of-thumb, a rental property that gererates $1,000 per month in gross rents could potentially be a very good deal if it were listed for a sale price of A. $150,000 B. $185,000 C. $120,000 D. $75,000

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  1. 30 June, 23:26
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    Answer: $75,000

    Explanation:

    The 1% rule of thumb in real estate is used to evaluate the price of properties. It states that the monthly rent must be 1% or more of the purchase price of the property.

    The higher the percentage of the rent over 1% the better.

    In the above the best answer would be $75,000 because;

    = 1,000/75,000 * 100

    = 1.33%

    The $1,000 is above 1% of $75,000 and so would be a very good deal.
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Home » Business » Using the 1% rule-of-thumb, a rental property that gererates $1,000 per month in gross rents could potentially be a very good deal if it were listed for a sale price of A. $150,000 B. $185,000 C. $120,000 D. $75,000
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