Less than 1% but still a good deal

[Danni Catambay]

Hi All,

We've all heard of the 1% rule by now (and if not, duckDuckGo it). But we're also in a weird housing market where urban areas all over the country are facing housing shortages leading to sky high home prices that just can't seem to command their fair share in rent.

I heard another investor on Bigger Pockets say that too many people let the 1% rule prevent them from getting started.

So I thought I'd start a discussion to hear stories from people who have made a deal that didn't at first meet the 1% rule for a rental property nonetheless turn into a profitable investment. I'm curious to know:

1. If it didn't meet the 1% rule when you made your initial offer, what made you think it was a good deal?
2. What were your market conditions that made 1% properties scarce enough to consider the deal?
3. Did you have any specific goals for the property other than just stellar cash flow?
4. Did you do anything creative to turn a humdrum property into something profitable?

I'm hungry to know everything I can learn! Please share your stories.