Does the 2% rule apply in Los Angeles
Hello, Los Angeles investors!
I was reading about the 2% rule and wondering if it's unrealistic with high LA county home prices.
If I buy a single family residence property to buy and hold for $200,000, I would need a monthly rent amount of $4,000. (And that would be an extremely low selling price in LA.)
$200,000 * .02 = $4,000
Does this seem right? $4,000 seems like a lot for rent, even in LA county.
This is where I read about the 2% rule.
Most Popular Reply
Manolo D.
#3 Contractors Contributor
#3 Contractors Contributor
- Contractor
- Los Angeles, CA
Lol. No rule on the books applies to LA, you can throw those away.