2% Rule vs 1% Rule and their Relevance

[Riley Barclay]

Back when the 2% rule was very relevant what was the average house prices/rent prices that were meeting the criteria? As prices on houses rose, things leaned more to the 1% rule. Now it is starting to be difficult to find houses that meet the 1% rule in most markets (not everywhere). I am interested to see the trend and at what price point/rent/years each of these "rules" has been relevant.

[Lucas Miles]

@Riley Barclay interest rates going to historically low rates was a huge driver in pushing the 2% rule to 1% on average. Investors could afford to pay more for the same piece of real estate as debt service price was lowered. As rates are continuing to rise trends will likely shift back towards 2%. Highly dependent on different markets, key is finding what works in your market or determine a strategy and find a market it does work in.