Often this will be in lower class neighborhoods where that higher rent to value ratio compensates for higher tenant turn over and other related issues.There are places where you will only hit 1% or 0.8% but tenants are low maintenance, properties are in good repair and that kind of return still makes sense.Regardless of which rule you follow, you will still need to analyze the entire deal and determine if it really cash flows.If a property that fits the 0.8% rule cashflows $300 a month and another property that fits the 2% rule cashflows $50 a month, which would you prefer?

One of the posts that was removed, probably because it was an advertisement, mentioned a cap rate below 7%, which is very low compared to other markets.  

Passive house building standards are aiming a low but not zero energy costs. 

I agree that 8% is probably low in Houston, especially as we look to the next year.  

yr 2000 or newer, low rehab for $25k or less.  

The reason why I ask is with the current low interests you can find  10% cash on cash returns, but the purchase prices on the investment are at or approaching the previous bubble peak price. ( 2005-2008) Is this dangerous? 

You can use your seed money to get into rentals, then cash out while rates are really low (and you have a W2), do it again and again (the BRRRR). 

Georgia has some great low cost properties I've seen.

Here is a part of the letter, I sent to the seller:The home inspection was completed on September 29th (please see attached) and the following issues were pointed out: 1.The wooden floor frame in the middle unit is deteriorating due to either prior water leak in the bathroom or due to moisture infiltration through the walls and foundation.2.There is evidence of significant settlement under the middle unit bathroom and north closet.3.The settlement of the floor and walls has also resulted in settlement of the roof frame above this area, ceiling shows cracks.4.There is an obvious depression on the roof – water is ponding on the roof above the middle unit, which adds excessive weight on the roof and potential for leaks.5.Asbestos containing material has been found.6.The current bedroom heat installations in the north and south units pose a safety hazard from carbon monoxide, fire and oxygen depletion.7.An electrician performing upgrades did not use ‘arc fault breakers’ in the north and south unit breaker panels, which is required by the national electrical code.8.Upgrades to the electrical system, promised by a real estate agent, have not been completed yet.

Home is located in Frederick County VA and having a hell of a time finding any regulations on rentals in this county and wanted to see if anyone here knows if there will be a problem renting home based on low ceiling height.