That's why the 1% Rule (or really the Monthly Rent / Property Purchase Price rule) comes to mind as a very convenient method to quickly compare multiple deals and decide which to pursue.

I plan on making some improvements to the property to bring it up to par with what's available on the market. 

It was in a very desirable area, so the market supported it's improvement more than the cost of the actual improvement.

Look for areas in your market that are trending or new initiatives by the gov't to help change/improve areas.

Also, this is going to sound rather controversial but I've been formulating this theory for a while but I don't think that the 1% rule applies to the Boston area and here is why:That is a rule of thumb to use in a cash flow environment.

@Benedict ReyesYou will need to check with your plan administrator as the following 401k participant loan rule will need to be considered. https://www.irs.gov/retirement-plans/retirement-pl...https://www.irs.gov/retirement-plans/retirement-pl...

I appreciate your expert input.Do these rules apply to NJ as well??

You certainly have to understand the rules of an SDIRA and then play by them.

How do you calculate the 1% in the One-Percent Rule?

@Reid ShafenbergTo learn about the IRA distribution rules, see the following. https://www.irs.gov/retirement-plans/retirement-pl...