Here are the details45+ year old housenew a/c (6 years ago)New roof (last year)New electrical panel (6 years ago)New plumbing (this year) mostly new appliances (oven is old)New floors in about 60% of the houseThe numbers:Currently on a 30 year loan with 3.8% int.monthly payment is $1250Avg rent Comps are $1600 to $1800If I apply the 50% rule then it does not work, but taking into consideration that the main money drivers have been addressed would I still be in good shape if make the decision to not set aside as much for the expenses. does this make sense?

@Lavada Lindsey This is an "ask your broker" (or your agent's broker) situation.Here in MA, our MLS rules prohibit an agent from contacting a person who is represented by another agent. 

Because the market is so sfr focused finding a propety that fits the 1% rule will also be difficult.

The law changed how mortgage debt is treated based on how loan proceeds are used.Home equity debt which is taken out to pay for things other than making substantial improvements to the home (which improve the basis of the home) is no longer tax deductible, as it is not considered acquisition indebtedness.

@Joanna Lenn The general rule is that putting appreciating property (e.g. rental real estate) inside of a corporation, whether S Corp and C Corp, is a no no. 

Could I pull equity to pay down debt to improve my dti ratio?

When performing a quick preliminary screening on those websites (i.e. to exclude obvious bad deals), do you usually use the 50% rule (or similar % rule) to estimate expenses?

Some use the 70% rule. 

Very generalized rule of thumb, expenses usually land around 50% of gross rent.

Thank you all for making me aware of the rules in California.