1% rule in tough markets in major metro northeast markets?

[Mike A.]

As I am moving into Stamford, Greenwich, Yonkers, White Plains and New Rochelle, I am finding it hard to hit that 1% rule that I've always tried to follow. I'm getting close, but I'm around 0.85%. I checked in Manhattan and Brooklyn, and there is no 1% possible. How do you all handle this 1% rule in major metro markets in the Northeast and New York?

[Trevor Ewen]

@Mike A.

NorthEast markets are tough, plain and simple. If rental income is your strategy, I would caution against it. Rent-value ratios are very high here. On top of that, the legal environment is not friendly to landlords.

The saving grace could be that the market retains massive strength and property values keep going up. That game can only go on for so long. I am in the confirmed-bear category, so I wouldn't bet on it.

Don't get me wrong. I love living in NYC. I take my above-average, NYC salary and put it straight to work in other markets.