50% rule and 1% rule

[William Wong]

Hello,

I have been looking at a number of duplex/triplex properties recently.

I have found it very difficult to find properties following the 1% rule in southern Ontario where I am based out of. I have however been able to find properties which yield roughly 8% annually in rent and are able to meet the 50% rule while generating a small cash flow.

Would an experienced investor feel comfortable investing in the criteria I laid out above even if it didn't meet the 1% rule?

Keep in mind, I have already expanded my search criteria to include towns about 2- 5 hours away from where I live.

Thanks.

[Thomas Lorini]

Hey William,

It's getting tougher to find properties with great number but not impossible.

My latest purchase was a free-hold semi in Hamilton purchased for 136K and rents for $1200/mth plus utilities.

Regards

Thomas