Multifamily 1 Percent Rule

[Bessy Reyes]

Hi Fellow BPers, 

I am looking into duplexes or triplexes. However, I’m confused as to how one applies the 1% rule. I know the 1% rule is not set in stone but if I wanted to use it as a rough metric should I be looking to a multi that gives me a 1% return with only one unit being occupied or when both are occupied? 
I understand that there will have to be savings for when there is a vacancy but I’m trying to figure out how to filter homes faster. 

Thank you all in advance! 

[Ryan Howell]

In my area, the 1% rule is pretty good based on our taxes, insurance, rents etc if I'm getting a 5% 30y mortgage.  Typically, my expenses run around 40% of gross rents.