Products - and your rental is a product - are priced based on all kinds of factors, including scarcity, business objectives, long-term strategies, etc.

It'll likely to benefit them one way or another if you choose to invest there.Unfortunately the market is not the same as what it used to be. 1% rule exists in areas where you wouldn't want to step on, with the hopes that area will over time get better.One very important investment factor is, the tenant pool you'll be targeting. 

A variety of factors, but it was purchased with partners, and we received an offer for the property that was really good. 

I'd add to factor in a couple things:1) The cost of hard money (how much will you pay in interest and fees).

I see a lawn in the back so I would factor in at least $50/month for the lawncare because someone is going to have to cut the grass. 

I'm more into this for spending money later but I also don't see anything wrong with taking out profits if it fits your lifestyle, it just may slow down growth which isn't where I am at at the moment.  

Within IT though I would also recommend, on a lifestyle and time basis, that once you have a certain number of years under your belt as a technician, say 4 or 5 years, I would shift gears from the technician route and use that background to get onto the project management path. 

Typically in our space closing costs are around 3.25% - 4.5% when you factor in origination fee, escrows & title/recording fees. 

Think in terms of dollars needed to cover your lifestyle and work fast to get there. 

As some others are saying, it’s not just size and price, location and other things are a factor.