However, as @Darren Sager mentioned above, you should be able to cashflow properties that meet the 1% rule by reducing vacancies and other strategies.Some of the neighborhoods that I'm currently focusing are Journal Square, JC Heights, MC Kinley square and some parts of downtown that are still affordable (in terms of price/rent ratio).

The Wall Street Journal just reported that the US savings rate in May was the highest since 1993.

And as @Bill S. said, looking at statistics for the whole state will be skewed, it's more helpful to understand the different regional markets.Colorado Real Estate Journal- list of lots of resources.and a couple more that I don't think are on the list above:DBJ Pinnacle Reports 

I'm a practicing attorney, part time investor with two properties in the Journal Square section of Jersey City, and two properties in Las Vegas.

I'm trying to learn about the industry as well, and I was recommended by a top broker to read my local business journal (Orange County Business Journal) and Globe Street (www.globest.com).

@Jay BoyleI see some good responses here, but just to be explicit, here are the following journal entries you would be creating for the lifecycle of a security deposit.Example:Renter pays a security deposit of $1,100 on the 10/15/2017.A year goes by...On 10/15/2018, the tenant moves out.On 10/20/2018, you check out the apartment and find that there is $250 worth of damage you want to net against the security deposit.On 10/25/2018, you return $850 to the tenant (hopefully they don't fuss over it!)

American Cities Business Journals

I hope you don't mind a followup question as I am still getting some conflicting info.You both wrote that I will not qualify for the full $500k in my situation.However, I have seen some articles that I say that since the apartment was originally my Primary Residence for many years (in my case it was my primary residence for 7 years) before I converted it to a rental, that I would still be able to take the full $500k deducsion (as long as I make it my primary residence again for 2 our of 5 years).For example, 1 article on the Journal of Accountacy web site (https://www.journalofaccountancy.com/issues/2008/dec/newtreatmentforsecondhomeproceeds.html) wrote: "The new rules to 121 contain two exceptions.

Subscribe to the Journal of Light Construction and Fine Homebuilding.

Read about them on Wikipedia, City-Data, Local Newspaper, Local Business Journals, etc.