I really doubt it's stayed on the market for a year with only 15k in rehab and then a potential 1% rule rent out.

The 1% rule really doesn't apply to this market, especially right now.

How stringent is this rule, really, and what documentation might the IRS require for me to prove that I lived there for exactly 2 of the last 5 years (versus for 23 of the last 60 months)? 

It can be an "OK" decision if it is single family, under 95k in cost, near the 1% rule, rent ready, and grab a warranty while you're at it.

I have done a lot of back of envelope calculations on houses in my area (we have essentially no multi-family units, and I could not afford them anyway) and none of them are going to be close to meeting the 1% rule renting them out, or even close to break even in a house hack scenario.What I am seeing is even with 20% down payment, mortgage+taxes+insurance runs ~$2500 monthly with rent on comparable properties being about the same, this being for a 3 bed/2 bath home.

This is not legal advice, just friendly information.As a general rule, real estate holding LLCs should be created in the same state as the property.

This is not legal advice, just friendly information.As a general rule, real estate holding LLCs should be created in the same state as the property.

Knew the rent would work because it hit the one percent rule, (Rent was exactly 1% of the purchase price) once I saw that I contacted the seller!

This is not legal advice, just friendly information.As a general rule, real estate holding LLCs should be created in the same state as the property.

This is not legal advice, just friendly information.As a general rule, real estate holding LLCs should be created in the same state as the property.