[Calc Review] 1% rule frustration

[Matt Huber]

Hello!

I've been practicing my deal-analysis skills using the BP calculators. I'm looking for cash flow properties (duplexes in particular), just using Redfin to get a feel for the analysis process and what inventory might be available. Lots of my deals are losers (at asking price) and some seem to be "base-hits." But even the "base-hits" don't pass the 1% test. (ie 1% rule) So... am I underestimated expenses? Overestimating rent? A link to one example is below. Many thanks for any thoughts.

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*This link comes directly from our calculators, based on information input by the member who posted.

[Matt Huber]

@Eric James thank you. Yes, the more I look at certain markets, the more I see this. In particularly trendy areas, I've seen a number of freshly renovated duplex that wouldn't pass the 1/2% rule! (Following them to see the settlement price if/when they close.)

Anyhow, your advice corroborates what I was already thinking. Thank you for the reply.