When doing analysis and making offers

[Ayne C.]

When evaluating a multi where the existing tenants' rents are way below market, so I use them to run the numbers it should I use market rents? (I'm using an app called deal check for my calculations so I apologise if this is obvious in the bigger pickets calculators.)

[Peter Fennig]

Always use the current rents to run your numbers, even if the rates are below market. You don't base your offer off of projected potential rent rates only current or previous. More than likely rent rates are lower because the property needs some sort of repairs in order to bring it up to par with the higher rent rates which gives you a bargaining chip in negotiations