Is there really a 3-3-3 rule related to real estate? There actually is a financial safety guideline for homebuyers to ensure they are prepared for a purchase. It advises having 3 months of emergency savings, 3 months of mortgage payments in reserve. It does not stop there!
It advises potential homebuyers to evaluate at least 3 properties before making an offer to avoid overspending and rushed decisions.
Let’s See How This Works!
Financial Security
3 months of living expenses + 3 months of mortgage payments in reserve.
Due Diligence
View and compare at least 3 properties before purchasing to understand the market.
Of course, we can turn this around so this can used for investors too. They can utilize a 3-month (stabilize), 3-year (economic durability), and 3-decade (wealth building) framework.
Benefits of the 3-3-3 Rule:
Not only can it help avoid overspending, it will ensure that the house can be afforded on a long-term basis. By informed decision making it helps buyers to compare their many options.
Very best thing about the 3-3-3 rule is that it applies to nearly every buyer. Investors and first time buyers can relate to this tool. It offers you goals and in your personal situation, the rules are adaptable.
3-3-3 Questions for Investors
Investors can adapt this framework to evaluate long-term rental or commercial investments, ensuring the property is durable and profitable.
3-Month Question: Can the property stabilize operationally and validate assumptions on repairs, leasing, and tenant onboarding?
3-Year Question: Can the property prove durable economics through at least one to three tenant cycles, with a repeatable leasing engine?
3-Decades Question: Does the property match your long-term, 30-year goals for wealth building through amortization, appreciation, and inflation-linked rent growth?
Related “3” Rules
The 3x Income Rule: Keep your purchase price around 3x your annual gross income.
The 30/30/3 Rule: Put 30% down (20% for down payment, 10% for buffers), keep housing costs under 30% of income, and commit to staying for 3 years.
If you are considering purchasing a home for personal use or for investment, now is a great time to consider your putting your plan in action. Katchen Company specialists can explain and help guide you through the process. They are experience brokers who specialize in Denver commercial and residential properties.
Call to speak with Kathy or Ed Boyle owner, broker at Katchen Company, a boutique residential and commercial real estate company that has been locally owned and operated in Denver since 1962. You will have many questions, learn the answers to those questions and they will also address all of your concerns.
Market Trends Report for March 2026 here.
