Is the 1-2% rule still true for a million dollar multi-family?

[Andy Sturm]

Does anyone have experience in expensive multi's. I was wondering if the 1-2% rule of thumb can still apply. I'm not concerned on number of units as I am the initial cost. If the purchase price was $1,000,000 (no renovation needed) is it realistic to still demand at least 1% of purchase price to equal one months gross rents? Maybe a million dollar building isn't enough of a difference and could still get 1%, but what about a $10,000,000 building. I feel that all tasks could be delegated out easily with the money coming in, and that the ease of owning it would increase greatly therefore driving demand up and your return down. I know all this applies to the area and many other factors I am just asking about a rule of thumb and your personal experiences.