I don't think the 1% rule is easy to achieve in Canada and I wouldn't worry about that.

Each unit is 550sqf.

Their insurance will cover pack-out and pack-in moving services which will remove all their personal belongings and place them in a storage unit. I

She starts arguing with me that my dti is too low and without a signed lease she can't include the rent for the unit I was purchasing. 

I don't know the going cap rate in your area but if a $110,000 property can achieve an 8 cap you have NOI of $8,800.

First and probably too late - is to have a lease clause that states that the property/unit is being turned over to them "free of insects/bugs/rodents."

Sometimes we don't achieve that in the real world and can only get 1.3.

Do you think 700k would be enough to achieve this goal?

How often is this rule used and what success have you achieved using it?

@Brock Young Let me clarify:My question is whether additional costs are considered part of the purchase price.For example, if a multifamily unit is listed at $100,000, but I have to pay $3,000 in closing costs,  would I calculate cap rate using $100,000 or $103,000?