Coming in at a whooping $20,000, and rent in the area for an apartment that size being $950 a month, you can see why I say this would be a great acquisition.

There are too many variables to give a one-size fits all answer.Personally, I would put $1M into commercial syndications (money backed by a hard asset that historically performs well in market turmoil) and diversify the remaining $1M across notes, NNNs, SFHs and some S&P 500 index funds.

I don't live or die by the 1% "rule" but use it as a quick screening to see if a property might make sense.

Less cost to enter the market, less demanding tenants (if you screen them correctly), and more opportunity for value add which is critical to generating solid cash flow. 

@Franklin Marte, we need some details.What size building?

Hello,I'm wondering if people 1) use Automated Valuation Models (AVM) in the small-medium size mulitfamily space to spot under-valued properties by comparing the AVM price (the predicted appraisal value) to the list price (or the price you think you could reasonably buy the property at) and buying at a large difference (e.g. the Zillow Zestimate or Enodo: https://www.enodoinc.com/e-valuation.html) and 2) use any software to make a data-backed prediction of the ROI of various repairs for a BRRR approach (e.g.

Also I recommend to get all the applications for the tenants or require all tenants to be screened (at sellers cost, 40 a adult is good). 

Here are some of the numbers we were thinking about when considering this property.I don't have a lot of experience estimating construction costs, but it seems like what would be the most worthwhile for this property would be to rebuild into a SFH or a duplex the size and style of the neighboring properties which are estimated on redfin at $667K to $700K (those are 3br/2.5ba and 4br/2.5ba respectively). 

Other side same size needs approximately 30k in rehab and will rent for $825+.  

@Bleau Deckerd the 1% rule is not very important because it is a tool to pre-screen deals.