Is the "1% rule" even possible anymore?

[William S.]

I haven't revisited the KC market for a few years. Are finding rentals even possible in today's market (JOCO)? What are the investors out there doing? Just flipping, considering the part of the cycle we are in?

[Micah Thomas]

@William S. In Kansas City for single family homes, it's what every investor I work with is looking for, but every decent listing in a decent area seems to be at a 7-8% cap rate these days. I think most of that is due to owner-occupant demand driving prices up. More often I have found that investors have to buy distressed or outdated and then do a light rehab in order to achieve 1%. The caveat would always be it really depends on the area you are looking in as there are certainly 1% or greater deals in more risky areas.