Whats the best way to estimate Gross Potential Rent?

Question

This guy has a really cruddy T12 and Rent Roll that he provided me with. its a 108 unit building with different unit sizes.

How do i estimate what the gross potential rent is as a quick estimate?

Danny Randazzo · Answer

@Frank Bonzai figure out what market rent is for each unit type then multiply by number of units to get GPR

Tony F. · Answer

@Frank Bonzai

If your looking for gross then yes rents in the area x number of comparable units, adjust by number of bedrooms if the complex contains mix of diff bedroom units.

If trying to quickly estimate net income.. that is trickier. In my area on smaller sized apartments 8-20units I always use 65% to compare properties quickly. This will very significantly from market to market, diff utility costs, harsher weather regions more maintenance snow blowing etc, but for just comparing two properties in the same area it doesn’t mater as long as you use the same multiplier. More doors under one roof will run more efficiently, so you shouldn’t use this to compare an 8plex to a 40unit property..

What net to gross multiplier do you other investors use out of curiosity?

Greg Dickerson · Answer

Yes you are looking for market rents in the area.

Frank Bonzai · Answer

@Greg Dickerson what am i checking ? what they're charging for rent?

Greg Dickerson · Answer

@Frank Bonzai check other complexes in the area. You can google search, go on Craigslist and call property managers.