Newbie rent question

8 Replies

I'm looking at evaluating multifamily (duplex, triplex, and quads) houses outside boston on transit lines to the city. Can I use rent numbers from the city and adjust for town conditions to get a rough number for rents. They are going to be lower than being in the city, but I'm trying to determine how much lower

I have heard of as a good source for comparing rents. Or maybe work with a good realtor to provide a quick rundown of comparable rents in your target area. 

It's always best to get the numbers specifically for the property if you want to be accurate. Otherwise work with a realtor and they will be able to supply you with the relevant info. Sometimes looking online does not always give you what you need.

Protip: Talk with property management companies as well.

Never approximate. Numbers should be based on actual comps. Use craigslist to see what rent is advertised for in the same area. Once you find a few comparable properties, monitor those listings to get a feel for how long it took to rent out. 

If your comps include a few properties and the values are consistent one to another, you can safely take those values to be market value.

You can scan craigslist/rentometer/padmapper etc. to find comparable rents. Assuming you can rent an apartment 800/month, when in fact 600/month is the going rate, can blow up your analysis. Also, it's generally best to assume conservatively.

@Patrick Kelly

Welcome to Bigger Pockets. Consider sending messages to other members which is my favorite part of the website.

Thanks everyone for the posts. @Mike Huang thanks for the tip. I will make some calls, that will definitely go a long way. I am trying to make my proforma as thorough as possible so I don't dig myself into a hole.

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