Purchase price to rent ratio

[David B.]

I have been wanting to purchase our first rentel property .

The neighborhoods where i would like to purchase the price far out weighs the rent commimg in.

rough numbers. Asking prices. Not done enough detail research to see what the homes actually go far plus how long set on market.

i drove around today. Found 3 for sale. 

147k 3 bed 1.5 bath

185k 4 bed 2 bath

155k 3 bed 1.5 bath.

neighborhood brings around 900 month on average. Highest i have ever seen listed $1100 which was a bigger house.

will the rent to purchase ratio correct its self in due time.

i try use the 4 square method to determine good purchase or not.

but most of the time im looking for 10% yeld or better or im wasteing my time keep money in stock market.

any tips or advice on how to handle high purchase price and low rents.