The 1% rule is best only used as a quick and dirty evaluation used to pick which property you plan on running additonal calculations on.

Just remember though unless you have deep pockets you need to at a bare minimum stay cash flow neutral until you get the property running and your debt paid off.  

I am a realtor and wholesaler, and I get some buyers looking for owner financing, some sellers need/prefer getting cashed out and there are some lenders I work with who can provide the financing however they run out of funds sometimes.

If the proper reports and documentation are not completed, you run the risk of failing an IRS audit and the cost segregation not being honored.

An easy flip at 7-10% return might be more lucrative than a larger project that takes longer and more chances for cost over runs. 

At this level of scale, it is almost the same as running an extra unit.

FL has a ridiculous number of low-value properties, everything from essentially campers on 55+ lots to MH parks everywhere to run-down shacks in much of the rural areas, all of which is going to drag down the average premium.

$1000 per door is a grand slam out the parking lot home run!

I was able to rent the garage to a seasoned electrician running his business through there only coming in and out to stock his truck once per day.I hope to be able to convert the second floor into an ADU as soon as Feb 2nd rolls around.

However, we will likely need a property manager to assist with some facets of running this rental (since we would not live locally) and would primarily market it through platforms such as Airbnb and VRBO to start, (eventually setting up a direct booking process).Here's our question for those who have experience in STR's or who might be involved in a similar scenario: How challenging is it to meet the material participation hours needed to achieve active status?