2% rule Minneapolis

[Brad Park]

I am starting to analyze some properties around SW & S Minneapolis by using the 50% & and the 2% rules and I am not seeing anything that is fitting within the parameters.  Am I missing something?  So basically a $300,000 should rent for $6,000 a month?

[Marc Jolicoeur]

In desirable areas like SW Minneapolis or S Minneapolis, the 2% rule does not exist.   I think you can get to 1% in some areas and depending on the property condition.    

There are no 2% deals in this market unless you find a motivated seller with a very distressed property (maybe)

You can probably find it in North Minneapolis and in some areas of St Paul but those are not the best areas.

Instead of worrying about the 2% rule, you gotta decide how much cash flow and return on investment that you want to get as you invest in rentals.