1% rule property in an over saturated market

[Anna Holan]

Hi everyone! My husband and I are hoping to buy our first investment property soon. We have actually found a duplex that meets the 1% rule (actually a touch over that!) and would purchase it and live in one side and rent out the other for the short time we are in that city. Then we would rent both sides out once we moved. However, our only concern is that the market there is very saturated. Many homes are for sale or for rent, some even abandoned! Did these homes fail because they didn’t meet the 1% rule? As far as I can see, this home is the only one listed that meets that rule. Or is this a house you would stay away from considering its surrounding market? It is near a military post so there is always people coming in and out of the area. We are excited to get started and really hope to not have to rent again, but obviously we will wait if the timing is not right!