Rent to Purchase Value Ratio

[Jerry Poon]

I was speaking with a friend, and he mentioned a mutual friend who purchased a duplex for $28k that brings in $1000/month. This has an absurd rent/value ratio (almost too good to be true in my opinion) and I wanted to start a discussion.

How much weight do you guys and gals place on this ratio?

What is the highest rent/value (value includes purchase price and rehab costs) ratio you have seen? Where was this located?