Those are fairly good numbers. 1 br units are the least marketable and easiest to outgrow, what does a comparable 2br go for? The rent multiplier top price is 165k (1100×150) and the low number is 137.5k (1100×125), so I would say that the price is getting close to the fundamental range. Is that unit the worst one in the worst condition? When the units are selling between 137.5 and 165, it is a sound investment provided that rent is an accurate one, not just what one is advertised for but what the average rent would be and a price that would make it last no more than two weeks when advertised. If there are units advertised for 900 that get snapped up and an 1100 that sits there, you need to re-evaluate the rent number used.
All in all, the numbers sound good without knowing the specifics or the complex I’d say it’s close. Factor in the overcorrection that the media is fueling and I’d guess that the 125x multiplier may also be a reality.
The last part of your question is the hardest to answer. There will not be any appreciation for the next two years and doubtful there would be any rent increases either. It is not common for someone to find a 1br acceptable long term housing, so that person that you think would buy for th long haul rarely buys a 1br. They buy one to benefit from appreciation while living in a transitional property for them, they may become a landlord when their lifestyle changes or they may sell for a profit. Right now, people are looking at this kind of property as a noose or an anchor rather than a springboard, so it will overcorrect more than sfr’s, it always does.
