Quote from @Jason Bohling: @Saad D. never paid attention to the 1% Rule, and while some people in some markets can occasionally find a deal that it will apply to, it isn’t feasible in most situations.

They're good to have open access to capital/cash/equity to a property ahead of time so you can execute a deal or purchase when the time comes on a split second decision (versus having to apply to a loan at that time which might take 20-45 days to get approved/closed/etc plus by that time you dont know what your future income/credit/assets will be like in order to qualify anyway).The second use is sleep at night factor and having a reserve of capital in the event an emergency event occurs in life.For these two reasons is why I use lines of credit.

Nothing in our "era" has changed these basic rules:1.

I am not sure of the rules on that.

If you see someone violating the rules, create a post with "@moderators" and we will receive a notification and respond.Again, welcome to BiggerPockets and happy investing!

It is a good rule.

Lots of houses have flood designation amendments if they are up against little creeks, so they wouldn't disclose any issues because they had their boundary inspected and ruled OK.

@Patrick Shep I would absolutely encourage you to apply without any co-signor.  

She's claiming financial hardship due to some personal issues and is asking if we can apply the deposit towards her November rent, and she'll make it up.

At today’s rates, most properties at high LTV are negative even with 1% rent to value ratio   This implies the 1% rule is far from assuring positive cash flow   Good luck