Look at the values of your 2 properties, consider any outstanding debt, calculate what your payment might look like on a cash out refi, compare that to current or potential rents.

Quote from @Nelson Badillo: In my experience, HUD requires you to provide at least three comparable properties to justify your rent.

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

However, at this point, the information is still more general and scattered compared to certain focused programs.

When you compare what houses are going for in both Mooresville NC and Greenville SC and what they rent for, it may make 0.5%.

Go to furnished finder and airbnb to compare rents and determine your rate.

However, I believe the hypocrisy comes in when you look at what the actions of the presenters are compared to what they are presenting - does their walk match their talk.

You have less control with a property like this when compared to other asset classes.The upside here is that it seems there is room for negotiation because of the below-market rent tenants.If you're looking to put down $200-250K, I would recommend looking into a multifamily property, especially one with additional income potential. 

The prior poster noted the main categories.Without more detail your note you will need to find a lender partner to scale.

without comparing property tax and maintenance costs the 1% rule is meaningless.