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.

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

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

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.

Or maybe a favorite way to stay updated on local rules?

Figure out ways to enforce rules to protect yourself and the other renters.

Which is very complex and costly and likely warrants professional help.Now, if it's just you and your spouse, then your 2024 tax preparation is likely relatively straightforward:- you will create a Schedule C on your personal tax return- you will NOT report any costs of purchasing the property or its rehab, not in 2024- you will report your business overhead expenses such as marketing, driving, technology etc- you will end up with a business schedule showing zero income and some expenses - not breaking the rules but potentially raising an audit flagCan you do it yourself?

A quitclaim deed is a straightforward way to transfer ownership, but it doesn’t address tax issues.

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. 

This approach could keep things straightforward while accommodating their need for housing.