Hobby landlords have a very strange idea as to how a business operates.

Look I would only use the 1% rule as a minimum gage in general and I would want more for me personally . no ,I don’t need a bullet proof vest or ak47  to collect rent lol and yes You are certainly going to have more challenges and yes it’s going to be hands on management  to operate in these areas .

Many fly-by-night operations will talk a real good game but then suddenly stop responding or 'not be able to accommodate you' if you ask about coming out to see them.

For example, some people just take the T12 (this is the Profit & Loss) and the Net Operating Income (NOI) and the selling price and calculate the cap rate.

If I use the 50% rule for operating expenses and then just calculate a mortgage payment of 667K at 5% with no money down, the cashflow  would be negative at around $1700 per month, which certainly is no deal. 

They are only to contact you regarding matters that affect the safety or mechanical operation of the property.

The 1% rule is not a meaningful metric and is only helpful when doing a comparison of properties with similar costs and operating expenses. 

At the very least, you’ll need to know the going cap rate for your area and the property’s net operating income.

As far as I know, it's still illegal under federal law to house a growing operation without proper licensing and the funding of one.

if the operator fails  they can foreclose and unless you paid them off you get wiped out.. what happens is some senior lenders will not cooperate .. need to get that hammered out on the front end