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Updated over 6 years ago on . Most recent reply

Madison Balter's profile image
Madison Balter's profile image
Madison Balter
  • Rental Property Investor
  • from Torrance, CA
  • Member since Aug 7, 2018
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Madison Balter's profile image
Madison Balter's profile image
Madison Balter
  • Rental Property Investor
  • from Torrance, CA
  • Member since Aug 7, 2018
Connect
Madison Balter
  • Rental Property Investor
  • Torrance, CA
2
Votes |
19
Posts
Starting Out

2% rule in Southern California

Madison Balter
  • Rental Property Investor
  • Torrance, CA
Posted

How does the 2% rule work in Southern California? A house in a C+ neighborhood can cost $450K for roughly 2400 sq feet. That would mean rent would should cost $9k/month.... Is this a bad neighborhood to invest in, or is there another rule out there for these types of areas?  Also if you use the 50% rule the house should only be worth $130k.

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