What Income Do I Use to Analyze Rental
Hello,
I'm trying to analyze a multifamily ( 4 family) property in Trenton,NJ. Should I analyze the property using current rents seller is receiving from tenants ( which are below market rate rents) or should I use the projected market rate rent I could get with minor renovations or do I use both?
Thank you.
Most Popular Reply
A lot of new investors have this idea that they will simply march in to their new property and jack up the rents . There’s a few different metrics that might make that not possible . There might be a good reason those rents are set at that price maybe the local tenant pool is broke the property is an eyesore or there was a murder down the street , so many factors . Do as joe says and base it on a known price it already produces