Rental 1% rule clarification

[Albert H Shin]

I was wondering if you purchase a property via financing, is the "purchase price" the down payment you put in?  A lot of examples online seem to be providing scenarios of cash purchases like "a house purchased for 200k should generate rental income of no less than 2000/month.

[Scott M.]

I believe what @Albert H Shin is asking is if he is buying a house for 200K and his downpayment is going to be 20K what number should he be using for the 1% rule.  Is it based on the total amount of cash he is out of pocket at the time of close (20K + costs) or the 200K purchase price.  

1)  If 200K it would mean the house should rent for 2K / Month

2)  If 20K + expenses it would mean the house should rent for 200/month

@Albert H Shin not saying I fully understand your question, but if so, the answer is 1.