1% or 2% in A-class SFR neighborhoods

[Nicholas Feldman]

Looking for input from SFR investors here.

My first rental property is located in a wonderful neighborhood, great location, in a part of town that most anyone would be happy to live in. I paid 139k (20% down, $27,800) and have a monthly PITI of a little under $900. I rent it for $1450 and will be able to safely increase this rent to $1500 when this lease is up. Additionally, I have awesome awesome tenants. I was really picky!

Here's my thing:

I love reading BP. I do it all the time. But I'm nowhere near the 2% rule that everyone is talking about. Flip side, I feel like I LOVE the numbers of my current property with $550+ cash flow per month. This is a model that I was thinking I would want to replicate for properties 2-10. But overtime I read about the 2% rule, I feel as though most of you would tell me that I'm doing it all wrong. I have no desire to be buying the dirt-cheap houses in the low parts of town that attract the more difficult demographic of tenants. Should I not keep buying these houses with similar numbers to the property listed above?

Thanks in advance for your thoughts!

-Nick