The FHA rules/regs (in particular the FHA self-sufficiency test) are applied the same across all markets, and I know for a fact that in rural communities across the country, and big cities that are not particularly desirable places to live, it's not a deal-breaker, I am not commenting on those areas. 

If you dont have a great team to work with you can lose your shirt even if the house is next door to where you live... there are lots of great areas but only a limited number of great teams so our final choice has always been team driven... saying that we look for an area where there are lots of opportunities  and rental houses available in good areas using the 2 % rule  we found this in Detroit and Toledo  more then willing to share what we do and what we have learnt over the years

. - New construction will be comped against other new construction - Start out with enough comps to justify the price point- keep the area tight to consolidate the risk vs building one or two in different parts of the same neighborhood. 

When you have studied your market properly you should be able to provide the answer of if single family or residential multifamily is better for cash flow. 1% rule was for a time when almost all deals were decent as a way to rule out the lessor deals and concentrate on the best deals.

Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential.

A CPA ensures compliance with IRS rules, maximizes deductions, and avoids costly mistakes, especially for higher-income earners with multiple income streams.

Imagine if you scrutinized yourself instead of spending so much time trying to justify your struggles by placing the blame on others.

Pete, try looking at cities within an hour of those areas.Lately, I’ve actually been seeing more properties hit the 1% rule, which hasn’t happened in a while.

This applies even to the 100,001st question about LLCs vs Insurance.I recall a rule here prohibiting responses like, "This has been answered many times.

However, you can still depreciate the remaining basis under standard MACRS rules.