Valuing garage/basement/etc in your deal analysis

[Nader Hachem]

Hello BP,

Been looking over some properties on the MLS and doing some analysis for my first rental property purchase. How do you guys value different aspects of a house into your analysis? Such as garage, finished basement, sq ft. Are those deciding factors for you guys? Or is your main concern the amount of bedrooms and bathrooms. I'm sure sq ft. is probably a bigger factor in your decision making than other things, maybe not.

[Brenden Mitchum]

Hey @Nader Hachem!

So for rental properties, you only really care about how those extra features effect the market rent. Typically, having a garage or a basement is not going to have a huge impact on rent. However, if a house down the block does not have a garage and charges $1200, you could probably get away with $1250 or maybe more. It all really depends on your market. Many of these sites that show rent averages for an area don't have much information on the comps so I would recommend speaking with your realtor to get a more in-depth rental comp analysis.

Please, feel free to message me anytime if you have other questions or just want to chat!