The Airbnb Version of the 1% Rule (It’s Not What You Think)

Summary

The 20% rule for short-term rentals is a general rule of thumb to estimate the revenue needed for a positive cash flow. However, this video explains how the rule breaks down and how a specific price to rent ratio is dependent on the purchase price of the property. To effectively utilize this concept, the video advises creating a Zillow filter tailored to specific criteria so new deals can be instantly assessed.