Regarding the 2% rule.

[Doug McRae]

I am working my way through the podcast and I often hear them talking about the 2% rule, meaning that your rent should be 2% of the purchase price. In my area I am finding that rent rates are hovering around 1% or lower. Is this normal or am I just in a bad area for rentals?

[Terence Clark]

The 2% rule is more of a guideline. While having your rent set at 2% of the purchase price is ideal, it won't happen in every market.

Most investors tend to look towards Cash on Cash (CoC) return.