What happened to the 2% rule

[Marcus Johnson]

Just prior to my first real estate investment in 2014, the 2% was heavily promoted by Brandon Turner.   Then more recently it was lowered to the 1% rule.  Now the current staff are promoting around .8%.   So interesting how the expectations for cash flow has just bottomed out to under 1%.    Does anyone else find that fascinating?   We bought a duplex in 2014 for 180k and rents were $2,500.   That property just sold for 375k, so that means the new owners aren't even getting a cash return on rents of .6%.   I've sold all of my rental properties now, because the market was insane in 2021 and 2022, people would do almost anything to get into the market.   Our goals had changed and we wanted to pay off our primary before going back into real estate again.    We couldn't be happier to have made out so well on our rentals and look forward to the future in some other type of investment.  

[Dan Williams]

Quote from @Marcus Johnson:

Quote from @Dan Williams:

Real Estate is getting far more competitive.  The promotion of wealth and business through Real Estate Podcasts and Books is quite high compared to 10 years ago; not to mention AirBnB rentals coming into the fold.  David Greene has mentioned a few times in his Podcast that 10 years ago you could practically do no wrong.

 What about prior to 10 years ago?  Did those investors get lucky?  My parents have owned farm land and housing throughout the 70's, 80's and 90's and made a killing by making good choices long term.   My point goes to show that cash flow continues to go down hill and IMO it's the appreciation that is important.   I'm glad I got out of this current market and plan to get back in when I think I can make good money again.

I meant anything Less than 10 years ago, 40, 30, 20, 10 etc...  Without the web, fewer people were able to know about all of the Real Estate opportunities and ways to get paid.

Good luck getting back into the market.  There are a whole lot of inventors from Wall Street to Mom & Pop waiting to gobble up good deals.  As I said, much harder to find deals now.