Rental Rate Data and Comps

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Rental Rate Data and Comps

Drew Steusloff
Developer · Atlanta GA · Member since 2020 · 30 posts · 15 votes

Hi BP,

I am playing with the numbers on some potential deals and I'm struggling to come up with rental rates. I have primarily looked at listings on craigslist as well as rentals on sites like Zillow and Realtor. However, while this information has given me a range to hone in on, Its is too wide to make an informed decision as the swing can make or break a deal. Additionally, I'm not sure how to gauge vacancy in order to tell if the listings are to high or too low. To be extra cautious I am only assuming 80% occupancy in my calculations. 

Additionally, does anyone have thoughts on the reliability of Mashvisor for investors. I have been using this to run some quick figures on  properties, but had never heard of this until an agent referred me to it. So far it seems like a good tool but what is everyone else experience?


Thanks,

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  • James G.
    Investor · St Louis, MO · Member since 2017 · 250 posts · 181 votes
    6y

    @Drew Steusloff Look at what other comps are renting for on zillow or the MLS. If there are not very many comps in the area, stay conservative. Do you know a lot about your market? Are there diverse jobs available? A growing population? If everything else pencils out, a good rule of thumb for vacancy is about 10% Hope this helps!

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  • Drew Steusloff
    OP
    Developer · Atlanta GA · Member since 2020 · 30 posts · 15 votes
    6y

    Hi @James G.,

    I am based in the Atlanta and am looking at intown Single Family homes. The neighborhood I am looking at is more transitional and is centered near a few exciting major projects, A new park being built out of nearby quarry, a bike trail and transit network extension, and a couple of new breweries and restaurants. Many of the people locating here are trying to get in early on area that will certainly be very desirable in the future. Additionally you are less than 15 minutes away from the employment hubs in Midtown and Georgia Tech. From the information I have gathered appreciation in the last year alone has been 148%!! The window for obtaining cash flowing Rentals is quickly closing. However its seems that most of the people looking in this area are looking to purchase property and not necessarily rent. My hope is to take advantage of the slow down from COVID and pick properties that investors are backing out of at a price point that works.

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  • Jingru Sui
    Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
    6y

    I use Zestimate on Zillow and retometer. Also compare the lease comps on the market. if my conditions is better I will raise my rent a little. list on market and see how people react. if can't be rented at the rate then I lower it by 50 at a time and see... 

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