Any Markets still follow 2% rule for rental properties

[Gp G.]

Hi,

Any Markets still follow 2% rule for rental properties that are in decent location, decent rents.. Which market allows this so that I can make more cash flow.  Most of the markets I see following less than 1% rule like 0.5% rule like If I purchase for 100k getting rent around 500$ a month which gives no cash flow after mortgage, insurance, maintenance, property manager. Please advise

[Ryan Kelly]

Good luck finding almost any market above 1%, let alone 2%. Plus, they will typically be low appreciation, low population growth markets. You are correct, most larger markets are seeing closer to 1/2 of 1% rent to purchase price ratios.