what strategies are you using in NY area

[Diana Tian]

the past two weeks, I listened a lot of biggerpocket podcasts. It talked a lot about cash flows: 1.5%~2% rent/price ratio....i live in new jersey, very close to NY. it is very hard to get that ratios. prices and expenses are high but rent is relatively low. Appreciation is great. the strategies of owning more than 10 places and making a good cash flow look almost impossible for me.......I wonder what other RE investment strategies are available?

[Darren Sager]

@Diana Tian  it's almost impossible to follow the 2% rule for homes in the top 25 Markets in the US.  I think the "rule of thumb" of 2% was created for homes that are very low in cost (under $100,000) because the costs associated with having those properties is higher related to their purchase amount, even though the cost of labor or services can be lower than other places.  When you get into markets like NYC where your rents are significantly higher than national averages you can make properties profitable with only achieving the 1% rule or finding out ways to improve the property to increase the cash flow.  You may not initially make the 1% rule however with lower vacancy rates it can make up for lost rents as well as trying to figure out ways that the prior landlord left "money on the table" buy figuring out ways to increase your rental rates.