Hi everyone, and thank you in advance for your interaction and guidance!!
I am a long-time student of BP and a new pro-member who is investing with a partner in northwest IN (we have 1 SFH in Merrillville and looking for another in the general area), as well as actively shopping, with a local agent, for a multifamily property in Indianapolis. We are both California residents currently building our portfolio in IN.
As we have been conducting our due diligence, putting our team together and analyzing properties, we are having trouble finding reliable PM's to connect with to gain reliable rental report data for neighborhoods where our prospective properties are, in order to plug in accurate numbers into the BP calculators and cross-verify our leads.
My questions are:
1: What resources do you use to gain accurate rental report data (vacancy rate, average rent amount, turnover, etc...)
2: What strategies do you use to gain this info from Property Managers (if that is your go-to)?
3: Are there any 3rd party services that provide this information (websites, etc...)?
4: What methods/strategies do you use to vet Property Managers from out of state?
Any and all information and guidance is greatly appreciated!! This platform and community is a GOLDMINE of information and resources!! Thanks again.
@Neil Buettner - I used to have this problem and I am actually launching a PropTech tool that gives location insights to real estate investors. It's still in beta so I'll PM you a link so you can try it. I always needed a way to quickly vet a property that came across my desk, without an onerous process. Now I can vet a location in under 2 minutes. If I like the location then I dig in on the property itself.
Learning to pull my own rent comps was huge for me. I find that PMs don't know the finish you'll have so they will give you rents for a very basic finish. With a nice finish, you can often exceed the average and median area rents. Rentometere is a tool I use all the time and I licensed their data in my PropTech tool.
I once bought a small MF unit deal from a wholesaler who had a PM go over and give him rental numbers. He thought that the deal didn't work because the PMs numbers were too low for the deal to work and he sold it to me, perhaps taking me for a sucker. Well, I exceeded the PMs projected numbers by $150/mo on the units and about to sell the property for double the price I bought it for. The lesson is know your rent numbers yourself, and don't rely on PMs!
Merrillville looks like a good location!
Thank you for your response @Lee Ripma !! Your PropTech tool would definitely be invaluable to folks like me. Very useful input on finish, too- I will take that into consideration. Loved your podcast appearance, too (#373). Just listened to it last week actually!! Much appreciated.