They've been marketing properties in Portugal recently and they've been doing deals in Puerto Rico as well following the same model.Given the comments above, there's not too much I can add.

If I am looking to do the lease option in my market area (Southern California) but the rent does not follow the 1% rule however it does cover the cost of the mortgage is that acceptable?

question for your lawyer...I would ensure the lease is being followed and that there are no history that would lead me. to believe it won't be followed.

It is a Fannie Mae ARM with the first year being X and the remaining term of the loan increasing and becoming fixed by 1% the following year for the remainder of the 30 year loan.

I am applying for a NYS Broker's license and am wondering the following; 1. is it neccesary to fill out the experience/points sections on the application? 

If you haven't already, I would recommend doing the following: Read Brandon Turner's book on Rental Property Investing https://www.amazon.com/Book-Rental-Property-Investing-Passive-ebook/dp/B018UTI2DOListening to the BP Real Estate podcast https://www.biggerpockets.com/podcastListening to the BP money podcast https://www.biggerpockets.com/moneyshowAttend your local REIA meetings to networkStart analyzing deals to get practiceEngage more on the BP forumsAdd a profile pictureAll the best!

I will of course follow the advice of @Nick Mulligan. 

Be persistent, follow through, show initiative.

While listening to podcast #283 (which you should listen to in case you haven't), Paul mentions that when he wants to buy a house, he sends the homeowner a three-option letter of intent with the following options: Cash offer (percent of what property is worth minus repairs, typically 50% of after repair value, this is the lowest value offer of the three that are given)Owner financing (interest only, this is a higher offer)Owner financing (principal only, no interest, this is the highest offer)Option 1 is easy to understand, the ones I don't know how to apply are 2 and 3.

Ignoring personal time involved, strictly financially, you're wrong about efficiency.