The 1% rule is best only used as a quick and dirty evaluation used to pick which property you plan on running additonal calculations on.

For short-term rentals (STRs), the 100-hour rule may be an easier path.

I would also add that you join your local REIA chapter (Real Estate Investor Association) as it will allow you to network with other STR owners and get more location-specific information. 

Specific Performance, Damages or Both.

You can find positive cash flow and the 1% rule here!

Quote from @Sherylyn Holden: I posted awhile back about the new short term rental rules in San Antonio here: https://www.biggerpockets.com/forums/530/topics/1200417-new-...Wanted to share a brief update on my experience and some other helpful notes:The city is getting serious about these rules.

Texas does have specific rules regarding home equity loans and cash-out refinancing (often referred to as "Texas Equity Section 50(a)(6)"), but these don’t prohibit homeowners from using funds for investment properties.

I am currently under contract with a wholesale deal that was to close on Monday. The property is being purchased at 103 with an ARV of 375. The wholesale deal is at 81.5. Everything on my side was set to close, and th...

I am currently under contract with a wholesale deal that was to close on Monday. The property is being purchased at 103 with an ARV of 375. The wholesale deal is at 81.5. Everything on my side was set to close, and th...

The 50% rule - in my opinion- is used solely as a quick back of napkin calculation to determine if it is worthwhile to do more investigating of a property.