But those renting rooms in the area, can be difficult to deal with.

I used to own a large SFR management company I sold to Evernest in 2019 and I manage a Kroger SC and a set of retail condo suites for a client now but it isn't my thing. 

Hello, BP famI wanted to share some of my research on new construction data in Maricopa County over the past 3 months! In this study, new construction is defined as a habitable structure requiring load-bearing featu...

I was then told that's the rate for the area.

@Robert Quiroz I think all of the factors you have listed might contribute.So I’m not going to comment on that but I am going to comment on an assumption you made.If 85% of rents are below market on deals you underwrite then those contract rents are probably THE market rent.You can’t just go based upon area median income to rent ratio.First off urban areas are oftentimes street by street, block by block.

Even in philly in D class area it is tough to hit the 1% rule.

Could be an option in your area.  

I have been working the last 6 months as a commercial real estate agent focusing on retail investment sales in Los Angeles. 

Only thing I would add here is to take a birds eye view of the area and try to decide if it will gentrify in your favor so the property appreciates at a higher rate than other areas.

There are a couple REIAs in the Tri-State area, but none of them are backed by the power of BP and the incredible people that it tends to attract.