When does the 2% trump all and when to let it slide
I'm in Massachusetts where things aren't cheap. I can't imagine ever getting close to the 2% rule on an acquisition. Maybe I've got it wrong:
Total monthly income from the property / 2% = purchase price. ??
My up/down 2 family is at 1.12% and it's positive by $1200 per month, assuming no maintenance...
Are there any applicable situations where this rule holds less weight? I'm looking at a deal that would be just just under 1% but its a completely renovated 5 family, roof, windows, utilities, vinyl siding, etc. Again, assuming no maintenance, it would be positive by about $2800 per month and pay almost $6000 in equity.
How low would you go?