How important is the 1% RULE?

[Bleau Deckerd]

I am looking at property in the Cape Girardeau, Missouri area.  The rental market is very strong for single families, especially with an abundance in healthcare occupations and a large university.  The problem is that it is hard to find a good property that works with the 1% rule.  I am curious if any of you purchase properties that don't quite work with the 1% rule and what you do to make these work with your rental portfolio.  I appreciate any advice or replies.  Hope everyone is having an awesome day!

[Stephen Schott]

@Bleau Decker the biggest thing about Cape Girardeau is finding your demographic and setting your own price point. Also if houses are continusly rented and are grandfathered in past Missouri state law for some tenancy regulation you can, add some bedrooms to most properties here and rent to college students. Also it depends on what you are basing your 1% on. Is it the appraised value of the property or the amount of money YOU have invested? For example I have a property that, cost me 38k and it took 22k in renovations. So 60k total. It appraised for 106k and I rent it for 1,800 a month to the baseball team at semo. We are about to finish an identical property next door to this one and rent it to more baseball players. In these examples I make 3% a month on my cost. But make 1.7% on appraisal value.