Newbie question.....How to research rental markets?

Question

Oh, such a noob question:  how to research rental viability  in a particular market?
I was thinking about investing in mother Philly rental student market....9+ major universities.  But with our desire to use our "sweat equity"  to get into a property that needs some help and our location being 1.25 hours away from Philly, plus the city taxes and other regulations, we have been considering rental properties in more "local" areas (Bethlehem,Allentown, Hellertown, Perkasie, Sellersville).  I'm just sure of the rental potential in these areas.  
Any thoughts?
Kathleen

Chuck Catchings · Answer

Kathleen: I have gotten local rental rates from RE agents & local PM companies. It all boils down to what ROI your looking to make and how much your looking to spend on the properties, also location. I work with a couple of great wholesale firms in Pa. & Oh that offer full turn key properties at really good prices. PM me if you want to talk. Good luck

Steve Babiak · Answer

Rental potential exists in those areas.  The rental comps links below should help you identify market rents, and some of the mapping ones will even show a distribution for an area.

http://www.biggerpockets.com/forums/52/topics/68326-rental-comps---what-to-use

http://www.biggerpockets.com/rei/fair-market-rent/

http://www.biggerpockets.com/forums/52/topics/39549-rental-comps

BTW, there are many other BP threads like those - it's one of those FAQ types of things.

Your challenge is to find the properties in desirable blocks at a price that makes the property a good deal for a rental.

Ali Boone · Answer

Always always always just make sure the numbers work. If you aren't expected to get a positive cash flow on any rental you go into, bail. I'd think that'd be the biggest concern in those areas because I think the purchase prices are pretty hefty? Just calculate your expenses accurately, throw in some for vacancies and repairs, and then see if it's positive. Cash flow is more important than the equity.