I say "Its gonna get greater later" they might not be hitting 1 % of purchase price the first year, but who is to say rents wont go up, or value cant be added the following years OR EVEN MONTHS. My last purchase was a 4 plex owner occupied that was self managed, Previous owner was something like a slum lord. I came IN TOOK OVER and flipped the script. Assigned professional property management, and cleaned the whole place up . all maintenance issue are attended to within 48 hours. I also have year around pest control, have the units sprayed once a month, every month, annually. 4 months of ownership and i have already had 2 of my tenants resign their leases. Im projected to make a extra $50 dollars per door. Giving me a extra $200 in cash flow my first year.
