Finding a Deal (Focus on Rutherford County TN)

[Adam Vo]

Hi all -

I have spent the past year saving for a downpayment, figuring out my investment strategy ( 3 BR/2BA buy and hold rentals), and target market (Murfreesboro TN). I am now ready to make a move in the next 2-3 months.

I constantly hear about the 1% rule, but am hardpressed to find any properties that fall into this range, especially in an appreciating market like greater Nashville and properties that do not need a ton of fixing up. 

I have searched all of the common sites (Zillow, Trulia, etc.) and am mostly finding $160k-$190k properties that would rent for around $1200/month. (e.g., 0.8%).

These properties possess all of the qualities I am seeking (turn key, appreciating, high rent demand, good schools, etc.), but have a low cash return after projected expenses (CAPx, property management, etc.)

Given the lower level of risk, should I be okay investing for a lower return? My thoughts are that even if I break even on cash flow, I am still paying down my debt, and (hopefully) gaining appreciation and over time rents should rise to provide that positive cash flow. 

How important is the 1% rule? I am missing anything here?

Is there anywhere else I should be looking or any other strategies I should employ to find deals?

Thank you,

Adam