Does the 1% rule still apply?

[Seth Levey]

The market has changed considerably over the last several years and while housing prices and rents have accelerated, the cost of a new fridge or plumber repair call really has not. Therefore, the net cash flow (especially in higher priced markets) may not have as high of % as it did in 2010, but the actual dollars left over after expenses are likely higher, thereby providing adequate cushion for expected and unexpected costs. Is this an appropriate adjustment of perspective as costs shift or am I just being too aggressive as I search for more deals?