The 1% is meant to represent a point where the rental is likely to just barely generate some positive cash-flow.

Purchase price: $35,000 Cash invested: $20,000 Sale price: $95,000 Fix and Flip, Purchased from a neighbor that bought it from an older couple that could not take care of the home or themselves anymore.

Once a town finds out you started without a permit, they can make it hard, so you have to play it up that you had no idea and the contractor did not tell you.ALWAYS.

The initial $100k negative would consume many months/years of cash flow.  

That rate, that cash flow, that small amount of debt, no way I am letting it go.

I predominately work with out of state investors looking for cash flowing rental property in our market. 

These factors also play a role in determining a tenant's eligibility.

If your cash flow can't cover property expenses and/or you have difficulty keeping a tenant there for long, are you comfortable taking on the monthly payments with the car loan?

If you play your cards right with real estate you can reduce your tax bill significantly.

It's important to note that other wholesalers are more likely to JV with you and take a disposition fee rather than simply give or sell you their list.If you're interested in purchasing access to cash buyers, you might consider platforms like InvestorLift, which can cost $25-30K a year for their dispo services.