2% Rule, 50% Rule, in Colorado, etc??

[Scott Kelley]

Hi all,

I'm looking at buying my first cash flow buy and hold property (I own a property now but it just breaks even until I can move into it). I am looking in Colorado Springs, and every place I find doesn't seem to meet the rules that people recommend. None of them meet the 2% rule. I've found a few that meet a 1.2% rent to purchase price but that's it.

On the other hand, some of them DO meet the 50% rule. So, which do you consider more important? Are there other factors you consider? For example, one of the duplexes I'm considering that brings 1.2% and meets the 50% rule (based on the area) is being built right now, so it's brand new and would have minimal maintenance for a long time, plus would be attractive to renters. But it also doesn't have a rental history so that's hard to guess.

I don't want to get to the analysis paralysis stage so any advice you have for a newbie would be appreciated.

Thanks

Scott