Question about the 2% Rule...

[Alexander Gruber]

Hi! I'm completely new here, so apologies for any incorrect formatting. I've recently become interested in multi unit rental properties, and have read/heard in numerous places about the 2% rule. The rule basically states that monthly rent should be approximately 2 % of the purchasing price. 

I live in Denver and ran quick numbers on a few of the properties that I have been researching here, and can't imagine that I would be able to get anything  close to 2% of the purchasing price, as most duplex and triplex properties seem to be in the $550,000 and up range. This would mean needing to collect $11,000 in rent or $5,500/duplex and roughly $3500/triplex per month. 

Therefore I've got a few questions...

-Am I simply misunderstanding this rule in general and applying it incorrectly when crunching these numbers?

-Alternatively, I realize that the Denver market has been extremely hot, and am wondering if the prices have been driven so high that common real estate knowledge (such as the 2% rule) would indicate a poor buying opportunity?

Thanks so much for any assistance and info! I hope that I can provide the same in the future!