# 1% Rule for Rental Property – Find suitable foreclosed properties to keep as rentals in the Philippines

Last Updated on January 11, 2021 by Jay Castillo | Filed under: - 0 Comments

How can the 1% rule help you find a rental property with the best returns?

Can you use this to find suitable rentals from foreclosed properties in the Philippines?

Yes, of course! I’ll explain how with real-life examples.

Note: The video recording did not include the part where I gave a more detailed explanation re: the term/formula for Gross Rental Yield. So what is gross rental yield?

## Gross rental yield – Quick definition

Monthly Gross Rental Yield compares the monthly rent to the selling price, as a percentage and is simply the monthly rent divided by the selling price.

Monthly Gross Rental Yield can also be referred to as the monthly gross return on investment of a rental property.

## Timestamps

0:00 Intro to 1% rule for rentals

0:09 Summary/definition of 1% rule for rentals

0:20 Why the 1% rule is useful when looking for rental properties

0:32 You should still get rental rates for tenanted properties

1:08 How to get rental rates

1:35 Step-by-step for foreclosed properties

2:00 How to establish accurate rental rates via market research

2:15 Gross Rental Yield definition w/ formula

2:34 Establish the average in your target location

2:49 Sample computation w/average for target location

3:40 Workshop – sample property #1 (Above average)

4:12 Workshop – sample property #2 (Below average – overpriced)

4:35 Workshop – sample property #3 (Above average)

4:52 My observation/insights for target location within Las Pinas

5:45 My Gross Rental Yield Calculator

5:58 Sample calculation #1 (w/ explanation)

6:38 Sample calculation #2 7:02 Sample calculation #3

7:24 Example foreclosed property that exceeds 1% rule

This was recorded during the Wealth Summit at the PICC in 2017. While this just an excerpt of my talk about investing in foreclosed properties, it still has a lot of info when it comes to choosing rental properties with the best returns using the 1% rule.

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