1% Rental Rate for real?

[Austin Largusa]

How realistic is this? I haven’t found many properties that would fall into this category unless I look into some not too awesome neighborhoods 

Additionally I remember hearing from someone that it’s really 1.3%

[Nathan Gesner]

1. You bought your $8 million property in Houston, not San Francisco.

2. You bought an $8 million property with a company that manages 1,500 units. The OP is probably a beginning investor trying to find 1-4 units.

3. I did a quick search of multi-family properties priced at $7 - $9 million in Houston and San Francisco. $7.5 million will buy you 12 units in San Francisco on a 3,100 sq.ft. lot. That same money will buy you 143 units on 6 acres in Houston.

Just because you hit the 1% mark on an $8 million property in Houston doesn't mean the OP can find a 1% property in San Francisco as a beginning investor. In fact, I'm willing to bet you can't find one in San Fran for $8 million which is why you're buying them in Houston. 

Maybe I missed some hidden nugget of wisdom in your post but it sure sounds like you just hopped on to pump your ego.