Then I'm using the 1% rule as a very basic guideline as I compare listing price to potential rent. 

But, legally, that could be your reason.The rules are different for owner-occupants because, when it's your personal home, you get to choose who you live next to. 

What rules can you put into your lease?

2% rule indicates purchase at $47,500.Thanks for any advice!!!!

I checked out the house, made the repair list, passed the 1 or 2% rule - now for the business end and completing contracts.

If you do not have the complete list of expenses for a particular property I would suggest using the 50% rule for your initial analysis until you ca verify actual costs. 

I have spent many years improving houses as a licensed contractor and really all you should worry about is making the place look clean and safe but let the new owners use their imagination and especialy their wallets to create the environment around the house they prefer.

I have talked to many a CA who figures this out when they get their new and improved tax assessment and just figured out they have no real cash flow or very little. 

It would be risky to continue because HOA can adjust the rules going forward by taking a vote by the owners.

Remember the golden rule?