I'm trying to figure out the monthly rent I can expect from a multi-family unit in a the North Highland Park neighborhood in Richmond VA, but i'm having trouble coming up with accurate figures. I can find information on rent prices in the overarching Richmond market, but nothing specific to that sub-market, which i'm pretty rents lower. There's a very small sample size for comparable apartments on zillow/craigslist/realtor.com and I was wondering if anyone has any strategies they've used to calculate accurate/conservative rent prices for specific neighborhoods?
Rentometer may be able to provide some decent estimates to get started. If you're working with a manager, I would ask their opinion.
We have a duplex in the 'Southern Tip' of Highland Park. We rent each of the 2 bedroom units for $845.00. At the time we bought it, it was a little high for the area. They are fairly new units with decent amenities.
I wouldn't be shocked by an upward trend of rents in the area. These are Section 8, so we are locked in, and the rate is fine for us as a tradeoff for tenant stability.
@Trevor Ewen Thanks! I hadn't heard of that website before, so I'll check it out.
$850/900 sounds in line with the majority of what I've been seeing. I had seen a few listings that mentioned $650/600 for a 2BR and that threw me off a bit. Have you had good experience with the program in that area so far?
Rentometer underestimated my rents and my manager recommended the push. For your underwriting and analysis, I recommend going conservative (so under-estimating is fine).
You want a property that will still perform well on a rainy day, so if you can't make it work for $750.00, it's probably not a stellar buy.
Typical rentals in Highland Park for a 2 BR 1 BA run about $800-$900. However, Richmond is a market where a high-end renovation can command higher than fair market rental rates. If you were to add high-end interior and exterior finishes you can expect to raise the average rent by $150-$300.
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