1% rule way more work and less profit?
Seems impossible to get 1% in booming cities like NY, Boston and San Francisco... in Boston you are lucky now to get 1/2%. Maybe with development you can get 3/4% but its hard. I often think about the places that get the 1% or more and feel they are a lot more work and with very little to no appreciation. The appreciation you gain in just a few years in one of these mentioned cities may equal the total "bonus" cash flow you get renting out a 1% rule home for 10 or 20 years?. If this is the case I don't see the sense. what I do see is that not everyone has the money to buy "big" in places like In Boston which 500k is a purchase price starting point and although you just get your 1/2 % your making a killing on the short term appreciation. For areas far outside the city (the 1 % or more places) your starting point can be only 50k or so and your pulling in that "bonus" cash but it seems like so much more work, more/tougher tenants, more reno etc.... Just my guess.. .curious what others think?