@Colby White I use it for total costs, but you can use it in whichever manner makes it easier to quickly evaluate deals.The 1% rule is simply a " deal funnel" tool.

I have a national NNN lender that will give me a 25 (or 30 year) loan on this property but his minimum origination fee is 1% or $10,000, whichever is less.

Even for a totally renovated house, I'm still budgeting for around $1/SF or $1000 (whichever is higher) of annual maintenance.You might also want to double check that your HML has no origination costs.

Otherwise, the short term rental would go on Sch E and be subject to the 14 day or 10% rule (whichever is greater) which if surpassed, would limit the amount of expenses to be taken. 

Thanks,Johnson Whichever market and or company you choose to work with when investing out of state make sure you do the following to ensure a high probability of success.

The only way for you to pull some of the 401k funds into the deal is by taking personal loan from the 401k, which as you know is limited to $50K or 50% of the balance, whichever is less.Using 401k funds in your personal deal would be considered prohibited transaction. 

There no reason to wait any time or have any “whichever is lower” rule come into play.

This only pertains to foreclosures and it allows after a foreclosure sale for another party to come in and bid $750 or 5% more than the sale amount (whichever is greater).

Plus, unless you're taking way way less than the allowable amount as a loan, you're cutting your retirement savings in half (the maximum amount you can take, or $50k, whichever is greater). 

I highly recommend that you visit as many brokerages as you can and aline with whichever has the same values as you.