Does the 2% rule apply in Los Angeles

[Shaun Pruett]

Hello, Los Angeles investors!

I was reading about the 2% rule and wondering if it's unrealistic with high LA county home prices.

If I buy a single family residence property to buy and hold for $200,000, I would need a monthly rent amount of $4,000. (And that would be an extremely low selling price in LA.)

$200,000 * .02 = $4,000

Does this seem right? $4,000 seems like a lot for rent, even in LA county. 

This is where I read about the 2% rule. 

https://www.biggerpockets.com/blogs/4454/32123-wha...

[Manolo D.]

Lol. No rule on the books applies to LA, you can throw those away.