California And The 1% Rule???
I keep reading about the 1% rule as a guide for investing in rentals...Living in CA I am curious if REI out here is thought of the same, meaning our market is a bit lopsided...prices are escalated and rents are just not keeping up.......if you do use it here how have you best managed to find the opportunities.....any thoughts are appreciated...... 
The 1% rule (which is a very rough guideline at best) would still apply inCA. It just means it is a lot harder to find the right deals. I don't know that I have ever seen a property that meets this rule.
At the end of the day in CA, as elsewhere, identifying whether the property is a good opportunity comes down to detailed analysis. The 1% rule might identify a potential positive cash flow property, but they are harder to find in CA.
The key must be in finding a system to locate the right motivated sellers, but I haven't had much luck yet (other posters from CA have, so it can be done, just got to keep plugging at it).
perhaps california's bubble is about to burst. Sounds like it needs an adjustment.
Not that there aren't any deals to be found, you'll just have to work harder to get them. The good thing is that once you DO get them, you're holding time will be almost nonexistant.
The motivated sellers are there, but because demand is high they are able to get more for their properties than investors like the people here will pay.
However, when the bubble bursts, their options won't be so numerous. Good investments should abide.