How to determine was a property will rent for

5 Replies

I'm considering buying a buy and hold rental property. It's already in good condition, although small; 2BD/1BA. 

Looking at craigslist and padmapper, there just aren't that many apartments in the neighborhood currently listed.  I think it'd rent ballpark $1000 to $1200 a month, but $1000/mo gives me a 7% cash on cash return and $1200 gives me a 14% cash on cash return.  A very important difference.

This will be my first rental property.  Should I only stick to neighborhoods with plenty of rentals listed so I can be more confident in the income it will bring in?

You need to do a market survey of at least 3 similar apartments in the area..

Find owners through public records and talk to them about their rent.  Maybe there are For Rent signs in the area. If you sign up for Zillow, there are old listings of what a unit was advertised for in the past. There may also be pictures and amenities in the profile.

You could try local PM's for rental data.

I know it may be difficult to find data, but it must be done.

Originally posted by @David S. :

If you sign up for Zillow, there are old listings of what a unit was advertised for in the past. There may also be pictures and amenities in the profile.

You could try local PM's for rental data.

I know it may be difficult to find data, but it must be done.

 How do you use Zillow to see rents for units current not listed for rent?  I'm logged in, but not seeing any option to do something like that.  That'd be really helpful though!

The neighborhood this house is in is only 10% rental units so the large majority of the houses have never been rented.

You have to know the address and plug it in.  Sometimes it is easier to get to Zillow through Google. If it has ever been rented through Zillow, then the listing will show up.

Here is an example I pulled up:

@Tony Otis

If you, "Think" you can get $1000-$1200 cut it by 1/3 and run the numbers.  If you break even or come out ahead of the game, I'd say its safer than not.  This provides you room where you can lower rent slightly if you don't get bites.

Medium avellino white copy  jpg Brandon Ingegneri, Avellino Const. & Property Mgmt. | [email protected] | 401‑301‑5528 | https://www.avellinocpm.com | RI Contractor # 41301

You may also be able to talk with a realtor who knows the area very well. I have not done this, but I see people asking this question a few times. Realtors who help investors in the area probably can be a huge help. You can also check out rentometer and hotpads.

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