Tools/programs you recommend for calculating monthly rental estimates?

Question

Hello once again BP Community!

I have been diligently reading, studying, and beginning to practice analyzing cash flows of properties within Chicago and some Chi suburban areas.

While I try to use whatever tools I have at my disposal and also be conservative with my numbers while analyzing properties (vacancy percentage, expenses, etc) I believe that in some areas of my analyses, I may not be getting the most accurate information.

For everyone out there, where do you get your rental estimates by location? I currently use the US Dept of Housing for rent by zip code.

Thanks !

Forrest T Schue · Answer

A tool that I've downloaded recently and like to far is DealCheck. It has a pretty good analysis program for rentals, flips and brrrr's. Might be worth a look.

Marcus Auerbach · Answer

I have not seen an online tool that is accurate across the board. Just like Zillow does not get home values right down to the last 10-20% online tools don't get rent right either. Condition and location play too much of a rule.

You can use it as a general guide, but the single best way to understand fair rent is by physically mystery shopping your competition.

We typically get higher rents than average and consistently more than rentometer or Zillow would suggest, but we are also offering a nicer product. Here is a property walk through video that shows some of the finishes we use.

Jacob Lopez · Answer

Hello Forrest,

I have to say DealCheck is great! I almost feel spoiled on how much information it gives you, pre-calculating all the data and even giving you estimates on potential cash flow. Thanks!

Jonathan Klemm · Answer

Hey @Jacob Lopez - I personally use the MLS and rentometer.

There are some Chicago specific rental platforms like domu.

Are you saying that you have found the US Dept of Housing to be inaccurate?

To run actual analysis we also really love deal check which @Forrest T Schue mentioned

Huston Kennedy · Answer

Contact several local property management companies, they should tell you a conservative and accurate rental amount.

John Warren · Answer

@Jacob Lopez the thing with rentals is that the market is constantly moving. Even in my core markets like Berwyn, where we lease all the time, I still talk to have a dozen friends who own and rent out units to get their sense of where the market is when I am getting ready to list.

I think you can start at a place like hot pads to see what the listings are being offered for. Bounce questions off your realtor as well as they have access to the MLS. I use the MLS all the time for rental comps in the city.

Lastly, go to meetups and meet other building owners. You will get the feel of the market almost immediately! You can find a list of meetups at the Neighborhood Building Owner's Alliance Website, and also on the Straight Up Chicago Investor's Podcast website.

About / Members – Neighborhood Building Owner's Alliance (nboachicago.com)Chicago Real Estate Investor Meetups | Straight Up Chicago Investor Podcast

Mark Ainley · Answer

@Jacob Lopez I will send you a tool to use that we have on our website that is available to the public.  It gives a nice report with comps. Keep in mind the rental market has been changing seasonally these last few years so what is on the market this week seems to be setting the market price especially this time of year going into rental season.  I like to use PadMapper app because it aggregates many different listing sites to show a current snap shot.  They have rented listings too on there.  Will DM you now.

Colleen F. · Answer

@Jacob Lopez you can also use rentometer.if you have an interest in a specific area though set ap alerts or scan rentals in the area periodically as if you were a renter to see renrs.

Angel G. · Answer

I usually look through several places but one of the most consistent tools I've used to do a quick check on potential rental rates is Rentometer. I'll usually go there first to get a baseline and then further refine that with local listings, etc..

Tools/programs you recommend for calculating monthly rental estimates?

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