2% Rule and applicability to CA

[Sahil Parmar]

All - Newbie here. And I am sure this has been discussed before. But how do experienced investors use the 1 or 2% rule to a market such as California? What are the typical rents you would expect (as a % of purchase price) considering the house appreciation is greater (and so are home prices so rents can rarely be 2% of the purchase)? Is 2% still possible in a market like this?

[Greg M.]

2% in California. 😂🤣🤣😂🤣😂 

I guess it is possible in some areas. After all, CA is massive. Perhaps the east side of the state that few people live in and places are fairly inexpensive. In the big cities and with current prices, you're closer to 0.40% on non-apartment buildings.