I live in the Bay Area where typical B class SFR prices start at $600k which would put the 2% rule rent level at $12k!!!

Rents for: 5k/month(net 2.5k using 50% rule)Rent Appreciation: 0/moProperty value appreciation: 100% every 10 years for the last 50 years.Property 2: Initial cost: 100,000.

Personally I say Don’t waste your time with single family homes and don’t buy a cheap property like that unless you can achieve 1% rule ( preferably 2% )rule rents or your asking for trouble .

The 2% rule really only applies to a specific set of parameters.

@Jake SvirskyLook for 2% rule Rents equal 2% of the sale price

I have about $50K equity in my current rental, that everyone recognizes should probably be sold.I know the 2% rule (rent should be 1-2% of total cost of home purchase), but I would love to know more about what works for you guys.

For example you could move this money to the Springs and get a 4plex around $400-425k and get about $3400 in rent or you could move the rental to an area like Columbus that you mentioned and attain the 1% rule (rents of at least 1% of the price of the home). 

The team will start the repairs necessary to prepare the house for occupancy.That said, here are some details of our 2nd deal: Location: Toledo OH Type: Single Family (2/1) Purchase Price: $23,000 Estimated Repair Costs: $4,000 After Repair Value (ARV): $38,000 Market Rent: $700 2% Rule / Rent to Price: 3.04%% Cash on Cash (COC): 18.89% Cash PurchaseThis is a long-term buy and hold.

The time-tested Golden Rule really works. 

It almost follows the 2% rule - rent is 1.92% of the purchase price.