2% rule and CAP rate vs. COC return
Hello,
I am new to REI and BP. I have been looking at property in San Diego (which is listed as the most expensive city in the US) and I am able to find properties that meet more than 15% cash on cash return, but do not meet the 2% rule, and have 5-7% CAP rate.
Is one rule more important than the rest? Or is it all really subjective? Any advise is greatly appreciated. I am at the beginning of my journey in REI.
Breanne