ex: median income $40k med income ÷ 12 months = $3,333 ÷ 1/3 (affordability ration- some will 1/4 to be conservative) =$1,111.

The choice is between rationalizing that the numbers within a mile somehow overshadow the numbers right next door...and they don't.What your question should be telling you is your gut is better at math. 

That said, given that most people will act in a rational manner, having the option to ask them to leave if they could not pay rent should make for a less dramatic situation. 

The dynamics of a short squeeze are real, but eventually rationality prevails.

@Thomas Willingham The 1% rule in real estate is a rule of thumb for a quick and dirty ration.

Rational response to low interest rates and high demand. 

There are reasons for everything, some are rational or based on numbers and figures, but some are based on emotion and what helps someone sleep at night. 

So my mind is rationalizing paying off the property since I’m having a hard time finding cash flowing properties that fit my risk tolerance at the moment.

@Memi LeeThe security deposits should have transferred upon purchase along with rent pro rations.

The latter makes more sense, but these rules aren't always rational. :-) Let's say I purchased a property on November 15.