1% test or 2% test? How do you interpret the results?

[Matthew Campbell]

Hello!

I am a total newb on this site and in this investment space and Im looking for my first deal! I have a few properties that interest me and I am running both the 1% test and 2% tests on them. 5 properties in a row have resulted in the test for 2% FAIL and the test for 1% PASS on the same properties.  I guess I am unclear on how to determine weather these are potentially good deals. I know there are alot of other variables involved but if someone could shed some light on how to properly use, analyze, and apply these test, I would really appreciate it! What margins on these rules make YOU comfortable in moving forward? THANK YOU!

Matthew C.