Good point, I guess I am wondering if you frequently see deals that meet the 1% rule? 

Do it before you apply for a mortgage though because its required.  

My rule of thumb is a .5% savings to refi so I'd want to get you at least to 6.250 or lower.

@Vincent DeLucia check out our website where we have the entire Metro Detroit area listed by Property Class and the 183 Detroit Neighborhoods.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

I have a lease addendum that are house rules, specific to the property.

You’ll need to meet the 100-hour material participation rule by actively managing the property—tasks like updates, repairs, and managing bookings count.

As far as the SD, disperse it as usual...apply any damages and refund the remainder.

I ran the numbers on some properties and they meet well above the 1% rule, but that sort of worries me...

If you don't know about the FEMA 50% Rule, please look into before you buy and try to rehab a home in a flood zone.

Nonpassive income: Real Estate Professionals, STRs and K1s from businesses where you have hands-on involvement aka material participation.Each group has its own rules, and generally they cannot offset one another.