Things To Look For In A Rental Property

according to this realtor/landlord who owns 6 homes and 18 apartments back East

She is joking right? 1% rule i.e. 12% yield is impossible to meet. Tell me where, I would love to buy there.
In SFBA, $4000 per month for a property worth more than $1.1 mil, is considered too much. 1% rule: How about $11,000 per month!

In the Midwest, they go by a 2% rule. Prices and rents are lower, but repairs and utilities similar to here, so a higher percentage.

You don’t have to travel very far to get a GRM of 12. I have posted about Santa Cruz County before, and I think Antioch or Stockton fit the bill too.

In 2010-2011, you could buy SFRs in San Jose that were close to that rule. I bought a 3/2 in East SJ for $204k, sold for $310k, would rent today… $3k??

Another SFR in 95110 (near Alma)… main house was 2/1 with 2 additional units in back yard)… I should have kept that gold mine. Bought it for $205k. Sold for $250k to a landlord, he is probably collecting $60k a year from it. That is almost as good as my best Watsonville properties.

I check those areas in Zillow, none near 1% rule.

You are right, too much appreciation. Either wait for a downturn or search for rare deals (not on MLS)

It is good to be 27 and know everything. .Call me when she is 67 and realizes she knows nothing…Especially about BA real estate. .