Hello everyone! BP is my new favorite way to learn about REI, and I like to come here to get honest and direct answers to my admittedly plebeian questions. The level and amount of knowledge on here, combined with the ...

Forget about the 2% rule (rent / purchase price) in areas where no RE appreciation is expected.

You can illustrate uneven tiles with a straight ruler to provide context. 

A guide more than a rule really.

Maybe the 1% rule (rents typically running about 1% of the Market Value of a property) is more like 1.3% or something where you are. 

Here are the rules that I go by:Rent Vacancy < 6%  ---> 0.8 % ruleRent Vacancy between 6% to 8% ---> 1% ruleAny property below 0.8% rule is not being considered.

Rule: Real Estate is the easy way to becoming financially free, buy my course for $997 and I'll show you howReality: Nothing is easy.

I have a 13 unit under contract for a client right now that's at 1% rule rent to purchase and this was off MLS so not some crazy one off deal. in both these areas rents have been sky rocketing.

@Rodolfo Canon So would you say as long as the expenses are covered and there is positive cash flow, the 2% rule really doesnt come in to play?

False: As exulted ruler of mars I declare all deeds purchased with "mikes1acremarsbucks" true and correct and good for all debts on Mars public and private!