How does the 2% rule work in Southern California? A house in a C+ neighborhood can cost $450K for roughly 2400 sq feet. That would mean rent would should cost $9k/month.... Is this a bad neighborhood to invest in, or is there another rule out there for these types of areas? Also if you use the 50% rule the house should only be worth $130k.
Rules mean nothing in SoCal. They don't mean much in most places these days.
All that matter are the real numbers. You won't find the 2% rule here...it just doesn't happen. Rents aren't high enough compared to the purchase prices.
The numbers are what they are. You can't raise the rents to make it what you want them to be. Not in the residential sector at least.