All Forum Posts by: Antonio Cucciniello

@Hoyoon Chae Hey Hoyoon, my dad is a contractor, maybe he could help. DM me or text me if you want his info

@Brian Beck Yes sure I will DM you it now, but its not related to that.  The method I am using is multivariate linear regression using the current rental listings out there, based on the number of bedrooms, bathrooms and the square footage!

What is fair market rent?

It is how much you can charge for renting out a home or unit based on a few factors we will discuss here.You need to know the fair market rent because it tells you how much you can make per month from a property when renting it.

How do you calculate fair market rent?

There are 3 main factors and 5 minor ones.

1. The first factor is the number of bedrooms. Typically, if a home has more bedrooms, it will increase the rent and if it has fewer bedrooms the overall rent will decrease.

2. The second factor is the number of bathrooms. Typically if a home has more bathrooms it will increase the rent because it allows for more privacy when taking your *****. If there are fewer bathrooms that means less privacy and less rent.

3. The third major factor is the size. The bigger the property, typically more you can charge for it. And vice versa. This number is measured in square footage. We are going to use these three factors in our calculations later!

4. Factor number 4: the location. This means, what city is it in and what area of the city, all the way down to the nearest block. Sometimes a few blocks can make a rental be worth so much more. For example, having a rental right outside a train station might be worth more than a rental 5 blocks away from the train. Closer to points of interest like tourist attractions, transportation, jobs all typically increases the rents.

5. Factor 5: Condition. If you are renting out a brand new place then you can charge more for the place than you can for something that looks and is old.

6. Factor 6: The type of house. If you rent out a whole home, it might be able to rent out more than renting out an apartment in an entire building because its a shared space.

7. Factor 7: Amenities. The more things the property has to offer like a garage, or lawn space, a backyard, a pool, extra storage space can increase the rents vs a place that does not have those things.

8.Factor 8: This one is only in select locations, but rents can increase depending on the timing of the year. For example in New Jersey, the rental properties in the Jersey shore charge a lot more when its beach season, but when its the winter, its a ghost town and the rents drop.

I hope this helps any beginner like myself, who struggled with not knowing how to calculate this number. Investors out there, I would love some feedback if you think I am missing anything! 

Hey David! This is interesting.  I am looking to do something similar.  I have a YouTube channel, and want to put my full time and energy behind it.  I recently bought my first investment property.  I am wondering how I could scale real estate, while quitting to pursue my dream.  

My thoughts are for your situation: 

- there must be other people in the movie industry who are making good cash that could partner with you if you spend the time to learn how to analyze and find good deals

- When you do get busy, save as much as you can to put towards an investment purchase yourself

- house hacking if done right, could significantly bring down your home costs, which would allow you start while living for cheaper/free and pursuing your filmmaking dreams!

@Christian Smith Unfortunately this is how alot of beginners feel.  Its scary to take your entire savings account and dump it into an investment, not knowing what will happen in the end.  For me the cure is the numbers.  If the math works, then the investment works.  Thats the best part about real estate from my limited experience.  

So in order to help you better, what specifically are you scared of or overwhelmed? Is it finding a location to invest in? Is it finding a property in that location that cashflows? 

@Nicholas Brady there’s no way you need a business degree to do well in real estate. Most people who have common high schools education would have no problem.

All you need is:

- a way to fund your deals (a source of income, a partner)

- the ability to do addition, multiplication, and subtraction

- a lot of persistence

- some creativity

If you got those(here’s a hint I know you do, you know how to use the internet well enough to be here) then you are fine!

@Will Fraser ok thanks for that, that is way more doable for a beginner! 

@Jackie Comitino Its tough to analyze without an asking price. The easy advice is just scrap it. If you really wanted to look at it, I would say find what other properties are priced at in that immediate area around that size, with bed and bath and use that to estimate what its worth.

A foreclosure has three stages.  The pre foreclosure means the owner has defaulted on the loan and the bank is starting the process of taking the home back through a foreclosure.

@Kristina Roberson Hey Kristina! I am going to send it right now!

@Jackie Comitino sent it your way this morning!