How Do You Determine Realistic Rents?
I see some properties for sale, some from this site even, that have perspective rents that seem rather high. How do I find out what a house or duplex will actually rent for in an area I am not living in or familar with. Most of the properties I am looking at are brand new and dont have rent logs. Also is the a way to find out the average vacancy rate too?
Thanx, Don
You can go on rent. com and see the going rents for the similar area, or try to get the local newspaper. You can also contact the local real estate management companies to get the feel of the general trend.
You can also use the MLS to figure out area rent or hire an appraiser to do a rent analysis. That can run you 30-75 dollars.
Thats is smart way to go, knowing that your looking for something that someone wants. I buy invest properties based on waht my clients need, so my holding period is almost none exisitng. No u r not being a broker. Your being a smart investor.
King, what MLS do you use? And what do you guys think about using RE Agents?[ Edited by Kitjai26 on Date 05/05/2005 ]
CK can you elaborate on how you find your deals using the MLS?
Well most of what I do is development, not buy and flip. So generally I am looking for something underutilized and priced to reflect its current utilization. If your program is about finding a bargain then the MLS is very slim pickings. But if you are about adding value then you can pay "full price" (i.e. what the property is worth now) and still make nice money on the added value.
How does a mailing campaign work in the commercial arena? Single-family home buyers frequently use them, but the results are often marginal due to the extreme competition.
Also, could you define "underutilized", and how often you see that priced accordingly in MLS (daily, weekly ,etc).
What sorts of things do you do to "add value", and do you have a general sense of "how much is too much"? What sorts of yields are you looking for on that added value?[ Edited by 4e6zbi102 on Date 06/16/2005 ]