80% of potential listing price

[Ver Andrew Starr]

I’ve recently found an agent investor who has connections to builders in an area where newly constructed homes can go for $300-400k and purchased for about 80% that before being built. Thing is, rent in the area doesn’t meet the 1% rule even with these prices.

Goal is appreciation and being new construction there are other benefits like builder warranty and low closing costs. Renters are also abundant in the growing area.

Any opinions on this sort of situation even though it doesn’t meet the 1% rule?