1% Rule (or close) in Any US/state City?

Question

Hi Investors!

I'm feeling a bit stuck and hoping I could benefit from your expertise and/or experience in this field, first some background:

1. I'm a Canadian (living in Toronto) and want to quit my 9 to 5.

2. I bought Condo 1 (1 bed) in Clearwater, Florida for $65k (USD) cash in 2016. Netting around $650/month. Condo is likely worth about $150k now.

3. I took out a HELOC on Condo 1 to buy Condo 2 (1 bed) in Seminole, Florida outright for $55k (USD) in 2017. Netting around $630/month. Condo is likely worth about $150k now, HELOC is paid off, owned free and clear.

4. I bought Condo 3 in the same building for $120k in 2020, it's now worth $150k, owned free and clear. Nets $650/month.

I would continue buying in Florida but am getting very concerned with the hurricanes so would like to invest in another state that has something, somewhat close to the 1% rule or can net me around $600+/month. The things I really like about Florida, specifically the Tampa/Pinellas region: honest contractors, honest renters, low taxes, low HOA fees.

I'm interested in a duplex/triplex or another condo as my next purchase but have no idea where else to look. I like Texas but hear the property taxes are way too high. Are there any hidden gem cities and areas within those cities that can get me similar numbers to the above? My budget would be around <$300k.

Andre Brock · Answer

Cleveland Ohio, Toledo Ohio, Milwaukee Wisconsin.

Taz Zettergren · Answer

@Sas Sel

I would recommend looking into Memphis, Little Rock, Oklahoma City, and Tulsa because these cities offer a great balance of affordability, strong rental demand, and landlord-friendly laws. They are all markets where we actively operate and see high investor interest.

Finding properties that meet the one percent rule has become more difficult, and those that do are often in areas with a very high percentage of rentals. These neighborhoods typically experience more frequent turnover and increased maintenance costs. Investors who prioritize long-term stability tend to focus on homes in the median price range. Although these properties usually have a rent-to-price ratio closer to zero point seven percent, they provide more consistency in tenant quality, property appreciation, and rent growth over time.

Florida and Texas both have higher insurance and property tax costs, which can reduce overall returns. In contrast, these other markets offer more manageable expenses. A well-renovated home with strong management can create a steady and passive income stream, even if the initial return is slightly lower than in riskier areas. If you would like to compare these markets to what you have done in Florida, I would be happy to go over the details with you.

Zach Lemaster · Answer

@Rene Hosman thanks for the mention!

@Sas Sel I invest heavily in the SE, especially in FL for the very reasons you mentioned.  I do think there are specific markets that do quite well in FL still, but it's also a good idea to diversify to multiple locations for many reasons.  TX is great, but property taxes are higher making it hard to cash flow.  There are many other great markets to consider in the SE like Columbia, SC, suburbs of Atlanta, GA, Tuscaloosa, AL, Tulsa, OK etc.  I recommend investigating some of those markets based on the criteria you outlined.  As Rene mentioned, our team at Rent To Retirement offers turnkey, new construction properties in all these markets including many in TX and FL as well.  We are happy to assist you however we can, regardless if you invest through our marketplace or on your own!  We have a ton of market data on all these locations that we are happy to share!

Hope this helps!

-Zach

Rene Hosman · Answer

@Zach Lemaster do you have any turn key properties that would fit this description?

Jorge Vazquez · Answer

Hey Sas,

Appreciate you sharing your journey—sounds like you’ve done really well! I just wanted to offer a little perspective from my 20+ years investing in Florida, especially around Tampa Bay and Pinellas.

First off—the hurricane fear is real, but maybe a little overblown. Tampa Bay hasn’t taken a direct hit in over 100 years. It’s actually one of the most hurricane-dodged areas in Florida. Now, beachfront properties do carry higher flood and wind insurance, no doubt, but the key is staying just a few miles inland. You’ll often find safer zones with lower premiums and the same strong rental demand.

The real insurance hikes we’ve seen lately? Not from storms, but from past fraud—things like sinkhole scams and lawsuits against insurance companies. Florida passed new laws in 2022 to stop the abuse, and rates are already beginning to settle down.

Now—about condos. I started with them too, and I totally get the appeal. But over time, the HOAs became a real pain. I’ve dealt with surprise assessments, changing rental rules, and fee hikes that killed my cash flow. These days, I stick to single-family homes or small multis where I control the asset—no board approvals, no drama.

One of the first Canadians I ever helped 20 years ago started with one rental and ended up building a multi-million dollar Residential Assisted Living business. He used the real estate as the foundation, converting homes into care facilities. Now he’s cash flowing heavy and helping people at the same time. So yeah—what you’re doing has serious potential if you stay focused and strategic.

You’re already ahead of the game. Just avoid the condo traps and don’t let fear of storms make you miss out on a strong market like Tampa Bay. Happy to share zip codes or areas that cash flow well with low risk if you’re ever interested.

Cheers,
Jorge

Ko Kashiwagi · Answer

Hi Sas,

Personally, I would first nail down to landlord friendly states - like AL, AZ, TX, IN, NC, CO, OH, PA, LA. There's a honestly a lot of markets to choose from within landlord friendly states that still can hit 1% especially if you are willing to do multi-family sub 300k.

In TX I've seen deals still hit 1% even with SFH especially if you use Section 8 for example in Houston.

Some cities as examples that I've seen many out-of state investors do: Birmingham, Houston, Cleveland, Milwaukee, Pittsburgh, Lafayette

Alex Olson · Answer

I have several on and off market deals in KC that hit the % rule pretty easy right now. Happy to chat more and show you the data.

Todd Anderson · Answer

@Sas Sel,

When I talk with the investors that I work with, who are concerned about the storms and insurance in Florida? We look at markets like North Carolina. I have worked with a number investors who are very impressed with the growth of investments around the Charlotte market.

The Charlotte market has most of the benefits of Florida, but is much more inland. The growth areas about 45 minutes outside. The city are good place to find investment properties that still hit cash flow metrics. As others on bigger pockets have said the Charlotte market is projected to be a growth market for the future.

I personally would not hesitate. I'm looking at other markets in Florida. I have found a number of great looking investments just north of you in the Ocala market.

It sounds like you've done a great job in investing so far best of luck in finding the next great investment.

Chris Clothier · Answer

Sas,

First, you did a fantastic job of taking action with a plan and reaping the rewards. Congratulations on owning three excellent properties. I would rank your results above average without question.

My advice would be to stick with exactly what you know.  I speak with many investors who think real estate is a never-ending trajectory of upgrading and iterating into more significant, "better" investments.  BP forums can certainly feed into that perception, and it induces a bit of FOMO.  You didn't mention changing asset classes or anything along those lines, but you mentioned hurricane concerns.  I believe those concerns can be mitigated by avoiding close coastal properties.  Based on what you've shared, I would not change anything.  You know the markets and have experience, including contacts and relationships you trust.

I like the idea of purchasing another condo in the same general areas where you have experience, focusing on staying inland where hurricanes may be less of an issue. There is no learning curve and no new relationships to build. Your hurricane concerns are valid, but the price points you mentioned seem well-positioned for affordability and demand while providing nice revenue.

Some of the best investors I have had the good fortune of knowing were very steady in product, price, and location, and their idea of diversification was purchasing additional units with less concern about changing cities or products.

You've done a heckuva job already putting together your portfolio, and I'm not sure I would look to go to another area and start over.  The juice may not be worth the squeeze.  Best of luck to you -

Corby Goade · Answer

The world has changed a lot since you bought in 2020 and your strategy probably needs to change too. Those 1% deals are mostly gone and the ones you find will probably be in VERY rough neighborhoods and won't perform the way you hope they will.

Personally, I'd focus on value add deals and BRRRR, leaning in to the hopes that rates will be down soon. If not, you'll have enough equity to flip, if need be.

1% Rule (or close) in Any US/state City?

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