Rental Property Investment

[Lakshmi Nikitha Duggirala]

Hi, I was analyzing a potential real estate property. The ROI is anywhere from 15-22% depending on how low I can get the purchase price. Cash flow is ~$350 a monthly but it doesn't meet the 2% rule (it's at 1.50%). So I wanted to ask how crucial is this rule and would you suggest looking at something else or does this still seem like a sound investment?

[Jay Helms]

Originally posted by @Lakshmi Nikitha Duggirala:

@Jay Helms I was trying to assess if the 2% rule should be a mandatory criteria but it seems like not many properties are meeting 2% that still do well. 

It is only a mandatory criteria if you make one. The choice is up to you. I have found that 2%+ properties are typically in the worst neighborhoods and 1%- properties are in better neighborhoods.