Updated over 1 year ago on . Most recent reply
2% rule for rental properties
I have read that real estate investors look for property that meet the 2% rule. The monthly rental of a home should be 2% of the home purchase price. I have not seen any properties close to that %. Occasionally I will see properties at 1%. Many homes are overprice but even at tax assessment value, the rental income is not meeting the 2% rule.
Am I mis-interpreting this rule?