Exceptions to the rules when buying

[Scott Kelley]

Hi all, I’m currently looking to find a “home run” buy and hold deal that will cash flow.  In my area, I really haven’t found anything because the market is currently so high.  I’m finding similar issues in other markets I’ve been assessing.

My question is this:  If you were to buy a house that didn’t meet the 1% rule for cash flow, what factors would you look at to break that rule, or would you ever buy a long term rental that didn’t meet the 1% rule?

There are some newer homes in my area (1-3 years old) that may be available at lower than market purchase prices, but they would generate between $2000-$2500 per month on a property that cost $300000-325000. Would you consider a property like this as a potential cash flow investment or only something to consider for appreciation?

Thanks
Scott