Quadruplex that doesn’t meet 1 percent rule

[Thomas Smith]

Hi all,

I found a quadruplex that I could probably get for 400K. Based on the self reported rental income, it generates 37.5k per year or 3125 per month. Based on this it does not hit the 1 percent rule but I feel like this is still a deal worth pursuing. I'd put 20k down so PITI with PMI would be about 2300/mo. I think the place is under rented and could probably get 3600 a month for it depending on repairs which I am unsure of the cost, but it is currently fully rented. Still very early on in getting my first deal and also analyzing this deal. Do any of you think this is worth pursuing?