Introduction & Rent/Purchase Price Question

[Greg Lautner]

Hey all, I'm new to this forum and am extremely excited to take the leap into real estate investment. I've been in the commercial real estate industry for almost 7 years, focusing mostly on multi-family financing. While I plan to continue my career in this field for the time being, my goal is to to develop my own real estate portfolio. I look forward to interacting with you all in order to gain knowledge, network, share ideas, and be a resource when I can.

My first question I want to throw out is specific to the Denver market. I've been scrubbing deals the past few days and given our extremely hot housing market it is near impossible to find a deal that meets a 1% rent/purchase price ratio. Granted, I've been looking in core Denver where single-family home prices have skyrocketed, but wanted to ask the group what the consensus is on the minimum ratio that makes since in this market to warrant a deeper dive. Obviously, it would be great to find a deal that meets the 2% "rule", but without tapping into the wholesale world, I've yet to find anything that comes close to 1%, nevertheless 2%. 

-Greg L.