Hitting your 1% rule on buy and hold?

[Boone Tyson]

I live in the Rio Grande Valley area of South Texas and work as an agent and investor. In this region, the rental market is very strong. We regularly see rental investment are opportunities, including SFH and MFH that are well above the 1% rule. I see SFH on a weekly basis that are probably closer to 1.15%-1.25%. The greatest opportunity looks to be value add investments and BRRRR strategy because you can get into the deals fairly cheap and labor is cheap to remodel. The purchase price here is really low, about $130,000. Properties cashflow really well, stay rented, and many tenants are long-term. We also have a D1 college in the northern part of the city contributing to a large renter population, but it comes with high turnover. On the negative side, this area's appreciation is barely paralleling inflation and property management fees run about 10% per month. I've heard its all relative, but it made me curious to know what other people see in the regions they invest in buy and hold deals.

Are you hitting your 1% rule all the time? are you getting good appreciation? What about cashflow?

Tell us more about where you invest and what you are seeing!