The 1% rule says a rental property should generate monthly income equal to 1% of its purchase price. By that standard, Zach and Marilyn are facing a tough market — but they're not letting it stop them. This debt-free couple has already profited from live-in flips and now wants to scale into long-term rentals. But should they chase cash flow in cheaper markets, or bet on appreciation closer to home?
Brad and Jonathan bring in Paula Pant from Afford Anything to dissect their situation. She challenges the rigid 1% rule, advocates for treating real estate like a business, and shares her own out-of-state landlord playbook. Zach and Marilyn also grapple with timing: When do you pull the trigger on a property that doesn't check every box today — but might position you for long-term wealth?
Key Topics Discussed
-
Introduction to Zach and Marilyn's Story
Their journey from debt payoff to pursuing real estate as a path to financial independence. -
Understanding Live-In Flips
How they've used the live-in flip strategy to build equity and generate profit. -
Discussing the 1% Rule
When the 1% rule applies, when it doesn't, and how to evaluate properties that fall short.
FI Calculator
Travel Tools
Podcast
Local Groups
Forums
Book Club
Value Matrix
Debt Payoff
Workout Logger
Events
FI Calculator
Travel Tools
Podcast
Local Groups
Forums
Book Club
Value Matrix
Debt Payoff
Workout Logger
Events
FI Calculator
Travel Tools
Podcast
Local Groups
Forums
Book Club
Value Matrix
Debt Payoff
Workout Logger
Events
FI Calculator
Travel Tools
Podcast
Local Groups
Forums
Book Club
Value Matrix
Debt Payoff
Workout Logger
Events
Join 25,000+ on the Path to FI
Free access to FI tools, forums, local groups, and 750+ episodes.
No password needed. Free forever.
Advice from Paula Pant
Paula's approach to investment properties: systems, leverage, and managing rentals from a distance.
Financial Strategy and Planning
Establishing emergency reserves, evaluating properties based on current cash flow, and deciding when to move forward.
Key Quotes
- "Focus on the present; assess if an investment makes sense now."
- "Don't let fear keep you on the sidelines."
- "It's not a competition. You do you."
Resources
- Fundrise: fundrise.com
- New Retirement: newretirement.com
Top Travel Card
Ready to unlock a world of free travel? Start with the Chase Sapphire Preferred® Card
$95 annual fee | Earn 100,000 bonus points
Best Card for Side Hustlers and Business Owners
Side hustlers! With the Ink Business Preferred® Credit Card you can earn free travel from your business expenses.
$95 annual fee | Earn 100,000 bonus points
Most Flexible Travel Card
The Capital One Venture Rewards Credit Card can be used to offset almost any travel expense.
$95 annual fee | Earn 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening
ChooseFI has partnered with CardRatings for our coverage of credit card products. ChooseFI and CardRatings may receive a commission from card issuers.
FI Calculator
Travel Tools
Podcast
Local Groups
Forums
Book Club
Value Matrix
Debt Payoff
Workout Logger
Events
FI Calculator
Travel Tools
Podcast
Local Groups
Forums
Book Club
Value Matrix
Debt Payoff
Workout Logger
Events
FI Calculator
Travel Tools
Podcast
Local Groups
Forums
Book Club
Value Matrix
Debt Payoff
Workout Logger
Events
FI Calculator
Travel Tools
Podcast
Local Groups
Forums
Book Club
Value Matrix
Debt Payoff
Workout Logger
Events
Join 25,000+ on the Path to FI
Free access to FI tools, forums, local groups, and 750+ episodes.
No password needed. Free forever.