There are no profitable multifamily building where 50% of your income is used as expenses or if they are profitable, it is just not worth it. Especially with 10% interest rate.
The 1% rule was actually 2% before, but with the increased competitions buyers are willing to go lower and lower everyday. What my point is, is that it depends on your current market, it is just a screening rule for a lot of investor so they can look at hundreds of properties and toss the ones with terrible returns straight in the trash can and not waste time with them.
Your market has different expenses than the USA and it has different expenses from mine (Canada). You need to figure out exactly how to calculate them and figure them out so you can calculate the NOI and determine the cap rate of your market. Look at the cap rate of properties SOLD, not the ones on the market, only then can you determine if buy and hold is worth it.
