Additionally, exploring alternatives like legalizing the existing cellar apartment, if applicable, or renovating the current layout to increase rental income could be viable options.

Here are some tips to help you find and distinguish cash-flowing properties beyond the 1% rule:To evaluate a property's income potential, consider alternative metrics like the 1% rule, cap rate, cash-on-cash return, and gross rent multiplier (GRM).

But this is safer than putting your family's personal residence at risk.

Alternative is to use an Auction company . 

Consider alternative financing options like portfolio loans that leverage your overall investment portfolio, private money lenders who may be more flexible with income verification, or negotiating seller carry-back financing directly with the seller.

Some lenders specialize in working with investors and may be more flexible with credit score requirements for multi-family properties.If traditional lenders are unwilling to approve your loan due to your credit score, consider alternative financing options, such as working with private lenders, seeking seller financing arrangements, or partnering with other investors.

Here are some steps to get started:Market Research: Identify areas with strong growth potential, low vacancy rates, and high rental demand.Financial Analysis: Evaluate the cost of construction, potential returns, and your financing options.Legal Considerations: Understand the zoning laws, building codes, and permits required for new construction in your chosen area.Sustainability: Consider incorporating green building practices to increase the property's appeal and long-term value.The Bottom LineWarren Buffett's investment in new construction underscores a broader trend in seeking alternative avenues for growth and diversification.

Alternatively, you could join some RE Facebook groups and ask for recommendations there.

If you do sell, what do the alternatives look like? 

All of those things, unfortunately, increase during a recession, providing a safer base case for self-storage than some other assets.