2% Rule in Urban America - Is it realistic?
I'm new to real estate investing and still in the homework phase before taking the plunge. I'm wondering if any experienced investors can weigh in with advice on the 2% rule (below) as it pertains to big cities:
"The 2% rule states that your monthly rent should be approximately 2% of the purchase price."
I live in Philadelphia, which to my understanding is one of the more affordable big city locations in the northeast. I've spent a good amount of time scanning the market on Zillow and Trulia to get a sense for the price range. The 2% rule seems completely unrealistic.
Is this just a bad time to buy rentals? The BRRRR strategy really appeals to me, but is there a different strategy I should be pursuing in my local market as a newbie? Is there a more realistic percentage to look for? I'd really love to hear from some experienced folks. What would you do with these market conditions if you were a new investor? Thanks!