Southern California Rental Property Location and the 2% Rule

[Jeff Stansberry]

Hi,

I'm looking to purchase my 2nd rental property after 10 years. I have about 50k for a down payment. I've been looking in affordable areas like Blythe, Barstow, Riverside, and Victorville. 

I am finding however from the asking price and current rent trends I am not coming close to the 2% rule. I do realize that property values have been going up the last 5 years and rents aren't going up that much to follow which would be affecting this. 

Am I missing something? Is the 2% rule a pipe dream? What are some other affordable areas in Southern California that you would recommend with a low price?

Thanks!

[Karen Margrave]

Welcome to BP! The 2% rule in California are unrealistic. If you can't afford to buy a house, you might want to look at condos, etc.  First though I'd recommend doing some research on BP, listen to some podcasts, and get familiar with the various real niches. There are many niches, like student housing, condos, partnering with a friend etc. that might work for you. Educate yourself on real estate, the process, and the local markets. Remember, America is a huge country, and what works in one place doesn't necessarily work in California!