Rental / Multi-Family Homes at 2% rule too picky?

[Michael Lerch]

I keep coming up with multifamily properties with landlords trying to get out of being a landlord. My problem is even after looking up comps and doing my 70% - expenses formula in my spreadsheet my offer isn't even close to the 2% rule. I keep 2nd guessing myself because I keep seeing "investment property" listings all over in the 1.10-1.8% range as if they all believe that's the norm for a good investment deal around my area.

Ex:
- Home is worth $128,000
- Guy is asking $95,000, but is flexible/motivated
- 2 unit at a combined rent of $1200 a month
- assume for this example no repairs needed
- My offer is between 54k-64k after my cut and closing costs
- Sell it to investor/another landlord for $89,600
- 2% rule = 1.22%

Is that still a good deal? I guess I'm trying to figure out if my wholesale formula is screwing up good deals for rental properties. I always shoot for 2%+ and I know that they are hard to come by, but am I passing up opportunities to make money?