Real Estate Math
A Florida property investor uses the '1% rule' to screen rental properties. This means they want the monthly gross rent to be at least what percentage of the purchase price?
A0.5%
B1%✓ Correct
C2%
D1.5%
Explanation
The 1% rule is an informal screening tool: monthly gross rent should be at least 1% of the purchase price. A $200,000 property should rent for at least $2,000/month to pass the 1% rule. It does not account for expenses or financing.
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