Copied from Investopedia:What Is the One Percent Rule?

Link: http://www.mortgagenewsdaily.c...March 11, 2021"The letter focuses on thenew 7 percent limitation on acquisitions of loans secured by second homes or investment properties.

I've invested in ensuring the house is in good condition (i.e. foundation repair w/ lifetime warranty, new hardwood floors, replaced main water line, gutters).

Not sure that best approach, maybe someone on here can suggest that.If the roof line is straight, condition of roof has 20 years left, and windows are good.You probably like (99 percent) don't have structure problems.And windows are about $400 each to change out and roofs are several thousands and upwards to $12,000.Condition of property on the outside is probably twice as much as inside!

I believe all investing vehicles work if they are done over a lifetime.

This should be irrespective of the percent, as I assume the valuation will be the same for all the investors.

Your parents signing over their house to you will be considered a gift, will require the filing of a gift tax return (probably not trigger any gift tax), and will reduce your parents lifetime gift exclusion. 

When an investor is looking at being cash flow positive, they are typically putting down 20-25 percent or more.

So I know that the 1% rule states that your property’s monthly income should be approx 1 percent of the purchase price.

You need to look at the fact that the lender(s) will look at the property as 100 percent leveraged, and will adjust both mortgages' interest rates up accordingly.