Finding stats on rentals before purchasing

[Bridget DiEoreo]

Is there anywhere online to look up certain stats of the rentability factors in certain locations? For example, would you be able to look up whether or not different neighborhoods, towns, cities, are more desirable than others to rent?  I'm starting a search on multifamily investment properties and coming across some areas that I'm unfamiliar with and wanted to see if there was something out there that could help me compare different locations before I go out to physically look at the properties.  

[Michael Dumler]

@Bridget DiEoreo, do you mean small multifamily as in 2-4 units or large 5+ unit commercial apartments? Pulling leased comparables is a viable option for your scenario. Explore real estate platforms like Zillow to compare rental and vacancy rates of the designated area. You can also network with investor-focused real estate agents and property managers to obtain this data. Moreover, you can use a data analytics site like Costar for commercial multifamily properties, but that'll get expensive quickly. What market are you looking in? 

[Bridget DiEoreo]

Hi Michael,

I'm looking at 2-4 units and just beginning my search.  I live in Massachusetts and currently own 1 multifamily, but starting to look in other New England states such as New Hampshire and Connecticut as they are more affordable, but I'm less familiar with these areas.  Most of the occupied properties I'm seeing, tenants are paying well below market value.  If I purchase vacant, I want to do due diligence on the area and research rental stats, so thank you for mentioning Zillow.  

[Bob Stevens]

Quote from @Bridget DiEoreo:

Is there anywhere online to look up certain stats of the rentability factors in certain locations? For example, would you be able to look up whether or not different neighborhoods, towns, cities, are more desirable than others to rent?  I'm starting a search on multifamily investment properties and coming across some areas that I'm unfamiliar with and wanted to see if there was something out there that could help me compare different locations before I go out to physically look at the properties.  

 Ok so 1st , do not look at anything just yet, you are not ready. Please connect with someone doing deals, learn then go on your own. But in response to your question, just look how much properties are renting for in the area , of course a D area will get less rent and a less desirable tenant then an A

Good luck  

[Eliott Elias]

Call property managers and realtors and ask for their input. They're usually honest about this. 

[Nathan Gesner]

It takes time and effort to learn the market. There are computer algorithms like Zillow estimates, but they aren't reliable when studying a particular property.

Find a market and study data from multiple sources.

[Jared Hottle]

Yes, there are several online resources that provide information on rental real estate market trends and rental property data for various locations. Here are a few popular options:

1. Zillow: Zillow provides real estate market trends and data, including information on rental rates, property values, and other key metrics for various neighborhoods, cities, and states.
2. Rentometer: Rentometer is a rental market analysis tool that provides rental rate comparisons for specific properties and neighborhoods based on real-time data.
3. RentCafe: RentCafe provides rental market data and insights, including information on average rental rates, occupancy rates, and other key metrics for various neighborhoods, cities, and states.
4. Yardi Matrix: Yardi Matrix is a commercial real estate research tool that provides market insights and data on various aspects of the real estate market, including rental trends and property performance data.

It's important to note that while these resources provide valuable data and insights, it's also important to physically inspect the properties and consider local market conditions and factors unique to each location.

[Sean Delisle]

Try niche.com,  They rate neighborhoods and towns etc.  Your state might put something out as well.  This is a report that NH housing releases each year.

https://www.nhhfa.org/2022-res...

[Shane Moynihan]

Hi @Bridget DiEoreo, if you are looking specifically in NH with it being such a small states sometimes it is hard to find good websites that have updated numbers. But I would suggest looking on apartments.com, Facebook Marketplace, and even Craigslist to get a feel of what the units are listed for and base your numbers off that. I have 4 units in Keene, NH so let me know if I could be of any assistance!

[Lien Vuong]

On top of what everyone said you can use city-data.com which compiles areas and incomes as well a niche.com to understand neighborhoods better.

[Jaylan Archer]

Hey Bridget!

A lot of great answers and insight already here.

Another thing that I do as an agent that is look at past sold rental properties and there rental rates. 

I can quickly learn what a two bedroom is renting for, or at least get a good idea of the lower end of the rental market by looking at rental rates for two bedroom units that have sold in the last year. 

An agent can pull this information and share it with you for any towns that you are interested in. 

[Kevin Crowell]

Hi Bridget -

1) City Data

2) Rentometer

3) Zillow

These have always worked for me as a starting point. After that, start calling realtors and property managers. A good property manger is invaluable. Hope that helps. Good luck. 

[Bridget DiEoreo]

Thank you everyone for your input.  There is a lot of great information provided and the help is very much appreciated.  

[Erik Manley]

Hello Bridget, like others have said the 3 that work for me and I prefer are:

1) Looking at currents rents on Zillow

2) Facebook Marketplace

3) Call local Realtors

I'm a investor and lender in CT and my brokerage in licensed in MA as well. Feel free to message me and I can give you some insights on the rental market down here in CT or recommend some realtors up there if you're interested.