cap rate and 1% rule question on a potential purchase

[Heather U.]

I am looking at buying a property for 165000. It rents for 1500 per month. Clearly misses the mark on the 1% rule. But from what I can figure it has a cap rate of 7.11%. The cap rate seems good but the it misses on the 1%. I'm having trouble sorting that out in my head. Can properties have a strong cap rate but still not meet the 1% rule? There NOI seems to be about 11,700. My pocketed money each month after all expenses is 332. That doesn't seem like a lot of extra money at the end of the year for a property that costs me 165000.