Rental property under the 2% rule

[Leigh Whiting]

So were looking to purchase our second rental property after we cash out refinance our first one but in our area there aren’t any deals that fall into the 2% rule. However, housing market and rental market is great here (west valley area outside of Phoenix). Thinking that as long as the house is cash flow positive we should take the chance and hope that appreciation will pay off in a few years even if we are breaking near even on the rental. Thoughts? Any other investors in Phoenix area have insight? Thanks!