What is the 'One Percent Rule'

It determines if the monthly rent earned from a rental property will exceed the property's monthly mortgage payment.

As an investor, you should at least break even with any investment in real estate.

Example:

Ken purchased a home valued at $350,000 Ken was required to put down 20%

 $350,000 x .20 = $70,000 Ken will finance $280,000 ($350,000 - $70,000)

According to the 'One percent Rule' the house would have to be rented out for no less than $2,800 per month ($280,000 x .01)