All Forum Posts by: Tim Scott

Hmmm... sounds like a slam dunk!... LOL  

Yeah, it does seem from the limited time I've been looking around that the midwest is cheap. Even though we'll be buying outside our immediate area I'm hoping to stay within a short drive if possible... maybe not possible. What is OOS?

Thanks for the feedback. So it seems that 1% might be an okay place to start to do a deep dive in an area. I realize it's just a starting point but it seems like it least a reasonable measurement of an area to see if it warrants a further look. I see you are in the area Matt and I did a quick glance at Elk Grove and Lodi and both looked to be in the .005/.006 range (~260k for a 3/2 house and rentals for this type were $1300-1600). Not a positive cash flow... Redding & Reno seem to be more in the .008 range which may be worth a more in depth look. 

Hello, 

Totally new in the game and looking to buy a handful of rental properties (single family, possibly multi family) over the next couple years. I keep seeing the 2% rule as a nice starting point to weed out many areas before doing some in depth research when closing in on buying. In the very informal research I have done in several areas of NorCal and Oregon I can't seem to sniff 2%. I've looked at probably a dozen areas and the closest I can seem to get is barely 1% with most areas in the .005-.008 range. However, 1% appears to be a positive cash flow fairly easily.... $150k financed is roughly an $800 mortgage and with all fees, potential vacancies & repairs, etc. factored into the monthly cost it looks to be under $1200. At 1% a 180k purchase price rents for $1800 which is plus $600 monthly if tenant pays most utilities. What am I missing?