Do "the rules" REI even apply in California

[Hai Le]

Newbie here practicing analyzing some properties in socal, particularly Inland Empire). I'm trying to implement the percent rules (2%, 70%, and 50%) but not even coming close with the property values. What percentages is everyone using as a baseline in the socal market? Or is everyone just looking elsewhere?

[Jeff B.]

Originally posted by @Kelly Singleton:

Those cash flow rules you've heard of are mostly not available here in So Cal. ....

For the vast majority, the So Cal rental game is an appreciation play, not cash flow.

Likely true in the SFR but when you can get into MFU 5+ it's a whole other game.