How do you estimate rent on small multifamily listings?

[Anand Chhatpar]

For those buying small multifamily, especially duplexes to fourplexes and out-of-state deals: when a listing does not state current rents, how do you estimate realistic rent before you underwrite?

Do you lean on HUD fair-market rents, Rentometer, a local property manager, nearby listings, broker guidance, or something else?

Which source has actually held up best against real market rent for you?

[Drew Sygit]

Quote from @Anand Chhatpar:

For those buying small multifamily, especially duplexes to fourplexes and out-of-state deals: when a listing does not state current rents, how do you estimate realistic rent before you underwrite?

Do you lean on HUD fair-market rents, Rentometer, a local property manager, nearby listings, broker guidance, or something else?

Which source has actually held up best against real market rent for you?

We've found that online estimates are only accurate around 80% of the time.

BIGGEST challenge - AI and algorithms don't take into account "condition" of the properties. A property that's just been totally rehabbed should rent for more than a property that hasn't been updated in 20 years.

So, you want to pull your own data from as many sources as possible to compare & evaluate.