Buy and hold in non-ideal markets

[Anthony Atyeo]

In my location the houses are relatively expensive compared to the rental rates. A really good deal might hit the 1% rule and 2% seems out of the question. There are still plenty of people that buy and rent property in the area. I am curious if they are just earning lower returns or have other strategies to boost their ROI. If you invest in a tough market, what kind of strategy do you use? How are your returns?