1% Rule Analysis Paralysis

[Connor Streit]

Hello BP Community,

Anytime I am analyzing a potential investment property, the 1% rule lingers in the back of my mind and makes me hesitant about pulling the trigger on a deal. My main barrier is:

1) Lack of Cash-flow - I live in a market where rental rates and home prices are on opposite sides of the spectrum. I.e. On average, 3bed/2bath houses go for about 150k with the average rental rate hovering around 1k/month for updated houses. Do I need to switch up my strategy to make a deal work? I'm wanting to BRRRR my first property but hesitate to pull the trigger because, after all expenses are accounted for, I'm still having to shell out $400-$600/month to pay the mortgage.

Am I missing an important element in my analysis? Is there another way to analyze a property without making the 1% rule a priority? Appreciate any insight!