2%-rule property locations?

[Jacob Ashley]

Looking for cities in the country that have viable 2%-rule properties which still have the opportunity for appreciation.

Appreciate your recommendations!

[Jay Hinrichs]

Originally posted by @Corby Goade:

Typically, areas where you can get 2%, you also get higher and more expensive turnovers coupled with slow to no appreciation. Obviously, cash flow like that is great, but talk to someone actively investing in that area (who isn't involved in your deal or looking to make you their client) and see what their actual expenses are. I'd connect with the chapter of NARPM for the area and get some legit vacancy and rent stats. I talk to investors every day who were lured by the appeal of excellent cash flow, only to have it eaten up by turnovers and vacancy and are having a hard time selling a few years later because appreciation wasn't what they hoped.  

2% rule  and appreciation = Oxymoron