I am trying to analyze real estate deals in areas outside of NYC and a lot of the listings on Realtor.com or Zillow.com do not say how much the units in the multi family properties I am interested in, are renting out for. How could I analyze the property to see if it's a good deal without having that information?
I started searching craigslist and other websites for rentals in the areas that I am looking for, but since I do not know the areas as well as I should, how can I be sure that a 2 bedroom 1 bath apartment on ABC street should go for the same amount on XYZ street? Also, even if the listings do have the rental income for the units, how could I tell that it is accurate information? What do I need to do to get accurate info for my analysis?
Hey @George Pappas . If I'm looking at a place that is vacant I search on craiglist. Its the quickest way to get a feel for what the market is getting. I limit the search to the same town/area the rental is in and look at the following,
# of bedrooms
# of baths
Once I have that I put all the rents into a excel spreadsheet. When I have 10 or more data points I look at the average of all the rents. This gives you a general idea. I also take out any places that have certain amenities that the subject property does not have and take them out.
Its worked well for me. I've had success by offering the same amenities that the top rents offer and asking for 50-100 dollars less.
Thanks Rob. I'll try that
If you know the owner or property manager, just call anonymously (or give a fake name) and ask what their units are renting for. If they say that they aren't renting anything right now, tell them you're new to the city and wondering what places like theirs would rent for. Then you'll have your answer.
@Kerry Smith -I will look into both websites. Thank you! I knew there had to be a way... LOL
@Dawn Anastasi - That is also a really good idea thank you. I think by doing the 3 suggested options above, I will without a doubt analyze these properties better.
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