What to do what the rent is below the 1% rule of thumb

[Ben Reeder]

Hey BP,

I looking to buy a multi-family in southwestern Florida. In that market currently all the on market opportunities seem to way over priced to meet the 1% rule of thumb. (ROT: 1% of the purchase price would equal the monthly rent)

Example: I'm looking at 2 unit 2/1 that rent for $1400 each. The MLS for these properties in that area are about 375k-ish.

On average the listing are about 100k over what would be needed to reach the 1% rule of thumb.

I would like to hear everyone’s thoughts on these opportunities.

Thanks,

Ben