Regarding the 2% rule. It seems unreasonable in my market.
Hello,
I am looking to purchase a house on Long Island, NY. Potentially a multi-family where I would live in half of it. I have been listening to the podcasts and they keep mentioning the 2% rule where each months rent is 2% of the total cost of the house. If I bought a house for $400,000, I think its entirely unreasonable to get anywhere near 2% of that per month in this area. $8000 a month for a mid-size house seems insane. I think the most i've seen similar houses go for is around $2500/3000/month. But then this violates the rule by a wide margin... does that mean I should not bother even renting on LI?