Newbie from Colorado Springs!

[Bryan Cork]

Hello everyone, my name is Bryan Cork and my family and I live in Colorado Springs. I am married with 2 not so little kids and am looking to establish a solid portfolio of rental property that will last into my kids future. I am fairly new to investing, and have one SFR so far and has been nothing but a blessing for the two years we have owned it. However, I do have a question for you smarter/ more experienced folks. On the podcast named “the ultimate beginners guide to real estate investing” they state a basic rule of thumb that when looking at rental residential property, the monthly rent should be approx %2 of the purchase price. With the example given that a $100,000 property should rent for approx $2000. Is this correct? Those figures seem incredibly high for our market. Did I miss something? My property is free and clear, and I have about $220,000 into it. It rents for $1550 currently which I thought was a nice return, but I’m way under that figure. So if I did my math right I’m at .7% of the rent to purchase price and I’m getting like 7% cash return. Let me know what you all think! Thanks!