The 1% rule says a rental property should generate monthly income equal to 1% of its purchase price. By that standard, Zach and Marilyn are facing a tough market — but they're not letting it stop them. This debt-free couple has already profited from live-in flips and now wants to scale into long-term rentals. But should they chase cash flow in cheaper markets, or bet on appreciation closer to home? Brad and Jonathan bring in Paula Pant from Afford Anything to dissect their situation. She challenges the rigid 1% rule, advocates for treating real estate like a business, and shares her own out-of-state landlord playbook. Zach and Marilyn also grapple with timing: When do you pull the trigger on a property that doesn't check every box today — but might position you for long-term wealth? Key Topics Discussed Introduction to Zach and Marilyn's Story [00:01:56] Their journey from debt payoff to pursuing real estate as a path to financial independence. Understanding Live-In Flips [00:08:50] How they've used the live-in flip strategy to build equity and generate profit. Discussing the 1% Rule [00:10:00] When the 1% rule applies, when it doesn't, and how to evaluate properties that fall short. Advice from Paula Pant [00:04:16] Paula's approach to investment properties: systems, leverage, and managing rentals from a distance. Financial Strategy and Planning [00:32:00] Establishing emergency reserves, evaluating properties based on current cash flow, and deciding when to move forward. Key Quotes "Focus on the present; assess if an investment makes sense now." [00:54:58] "Don't let fear keep you on the sidelines." [00:55:24] "It's not a competition. You do you." [00:55:31] Resources Fundrise: fundrise.com [00:17:26] New Retirement: newretirement.com [00:18:57]