How many investors really hit the 2% rule? ( New Orleans )

[Brandon Clark]

Hey Guys, 

I've been reading some of the tips that the real estate guru @Brandon Turner has been giving and one of them is the 2% rule (The 2% rule states that your monthly rent should be approximately 2% of the purchase price. In other words, a $100,000 home should rent for $2,000 per month; a $50,000 home should rent for $1,000 per month).

I'm planning on investing in my 1st B&H duplex property within the next 3 months and I've been looking at property's and this rule seems almost impossible. Is there a certain type of property that I should be looking for? A fixer-upper, nice area, turn key...? How close do I really need to get to 2% to actually feel comfortable with a purchase?

Thanks in advance

-Brandon

[Braden Smith]

Rents in our area average about $1 per square foot. That can vary up or down depending on the area, but that's the average. The only thing that matters for rental property is that it cash flows. Every investor has their own way of doing things and there is no hard and fast rule you have to stick to.