While I use the 1% rule on most of my purchases, there are numerous other factors that need to be considered.

There are a number of reasons for this but it would take numerous paragraphs to explain it.    

I mostly blame my naiveness in humanity and eagerness to get the project going.. here are many of the items (not all):All 3 HVAC units went out in the first 3 monthsBoth "high end" endless water heaters died within 6 monthsThe 1918  LEAD pipe entering the home burstSome lighting was found to be battery operated instead of electricUnfortunately a rock from DC water entered the piping which resulted in multiple cancelations and major repairsNo insulation between the upper and lower unit resulting in numerous noise complaintsPitch incorrect in back yard which results in floodingPlumbing piping incorrectly sized throughout homeAll gas lines removed and everything replaced with electric to pass city inspection easier (only house on the st without gas)Oh yeah, furnishing a two units that can sleep a total of 16 people is not easy nor cheap (especially with a puppy).

There are numerous examples of HCOL investors like yourself who bought 1 or 2 or 3 and got crushed because they weren't ready for the CapEx on the old, creaky midwest housing stock; didn't have the right team; didn't do an inspection; etc. 

The reality of house hacking hundred year old homes (what you'd expect to get in these areas), many of which have numerous deferred maintenance issues, is often very different than what the calculators or spreadsheets present.  

In fact, Scottsdale just approved numerous areas for additional MFH complexes.

That has helped me in REI for numerous reasons.

The first post should be a FACT and CRAP game:FACT: There WILL BE A RECESSION again....numerous recessions in fact, over the coming decades.

The more plumbing and electrical you have to move, the more expensive it will be and the sink under the window is a typical placement.If you do end up replacing the cabinets, put them along the wall with the stove, so you have counters on either side of the stove.for the fridge, you want to create a work triangle, so put it on the wall opposite the stove.With the appliances, don't go overboard. 

For upcoming meetup's in the San Francisco/Oakland Bay Area @Chandler Miguelgorry try this link:https://www.meetup.com/topics/...There numerous real estate groups...Good luck..