Run it by an experienced local investor or two.Determine repair costs and be conservative.

I'm more inclined to think that this is a very new law and folks are flouting it, and I'm being pretty conservative by trying to obey it. 

Maybe I am being too conservative with expenses that are turning actual good deals into bad deals?

That's a pretty conservative number and doesn't always work around here where purchase prices are much higher than other parts of the country.The 1% rule is for rentals and is a way of ballparking a deal. 

This is a duplex that I am considering purchasing, and I tried to be as conservative as possible.

If your numbers work, conservatively, then they will work even better when things are better. 

View report*This link comes directly from our calculators, based on information input by the member who posted.How does this analysis fare, I feel as though I used fairly conservative numbers.

I keep about 25% of the rent set aside for repairs, vacancy and cap ex (probably too much but wanted to be conservative) and the house cashflows roughly $300 per month.

They are also one of the few funds that has an investment grade rating and  conservative leverage at 40% .

The CA market is high risk right now and lenders are getting conservative.