1 and 2% rule

[John C S.]

Hi all. Can someone please explain the 1% and 2% rule to me again. Thanks

[David Faulkner]

2% rule will land you in the heart of the ghetto in most markets ... good luck collecting that rent. The higher the rent to price ratio, the higher the risk ... higher does not necessarily mean better, especially for a newbie. My advise is to ignore those rules of thumb ... in the case of the 2% rule, it is less than worthless IMHO.