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.