2% rents most of ten occur in very rough neighborhoods, where property values are rock bottom because few people want to own in that area.
I'd recommend comparing your rent to the market standards. Check out rentometer.com or craigslist and see determine the upper tier rent rates.
Since it's a SF rental, you're most likely breaking even at the 0.9% rule, so be above that or sell the property to get a better operating rental.
If I were the owner, i would sell that house and use the proceed to invest in multifamily and use leverage to increase my purchasing power and improve my returns
You have not provided enough details related to the home value and rental income to give advice.
@Thomas S. The home value is 340k and monthly rent is 1800.
Sell it asap, it is not a income investment property. $340K is worth $2800/month in opportunity value alone. After expense's you are probably losing in the vicinity of $2500/month.
I sure hope this place is appreciating like a rocket since that is your only chance to make any return. The property needs to be appreciating at a minimum 9% annually for you to break even.
@Thomas S. Would you mind explaining how you came to your conclusion? I need to be able to explain it to family members
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