Rental comps in my area

[Okie from Muskogee 0]

I have hit the ground running with this lease purchase thing and I have talked with a lot of sellers...so far so good!!

 

I have a potential LP deal in the works, but I have a question. I know how to run comps to find out what homes in the area have sold for, but I can't seem to find anywhere that will tell me what the current rent rates are for my market. I know rent rates vary a lot merely by location, square footage, etc., but is there a website that I can punch my information into and it will give me a general price of rents for the area similar to the way that I can get comps for actual house sales?

 

I am not getting my comps from the MLS, so I cannot access that. After I have done a few and get this N00B tattoo erased off my forehead, I figure I will know this information by way of experience, but to be honest, I am in the dark as far as figuring the rent rate.

 

Now I am going to charge more than the curent market and figure to give them a couple hundred rent credit, but if I am too far out of line, I feel I will have a hard time finding a good T/B. Any help would be appreciated.

 

Freddy

 

PS This deal is for a home listed at 99,500 with comps hitting at 103K. I think I can get it under contract for around 95K and I figured on marketing it on a two year LP with a cash out at 113K. Do these numbers sound in line for an LP or is my deal a little on the skinny side??

 

Thanks again!!

[Kimberly 0]

I know how to run comps to find out what homes in the area have sold for, but I can't seem to find anywhere that will tell me what the current rent rates are for my market.

Try looking at the "for rent" section of the paper. It is a starting point. Second, call RE companies that handle rentals. Give them the basic information about the house, the area, etc., but do NOT give them specifics such as the address. Act as if you are the homeowner not an investor.

 

Now I am going to charge more than the curent market and figure to give them a couple hundred rent credit, but if I am too far out of line, I feel I will have a hard time finding a good T/B.

You'll usually be able to get more than market rent, because tenant/buyers are willing to pay a premium.

 

PS This deal is for a home listed at 99,500 with comps hitting at 103K. I think I can get it under contract for around 95K and I figured on marketing it on a two year LP with a cash out at 113K. Do these numbers sound in line for an LP or is my deal a little on the skinny side??

What is appreciation in Muskogee? About the same as in Tulsa (5-6%/year)? "Listed" as in with a real estate agent? When and how is the agent getting paid? Two years for you or your tenant/buyer? You'd be better off with three or more years for yourself if you can get it and one year for your tenant/buyer.

 

More information on the numbers is needed. What are the rent credits? What rent will your tenant/buyer be paying? What will you be paying?

[MichaelC 160]

Freddy, the problem you're up against is that rents are not part of the public domain, as are housing sales. As such, determining rent rates is not as quick and accurate as sales price.

In lieu of published info, we can rely on a few other sources of data, as Kim has already suggested. A residential property management company can give you rental rates, as can the rental agent at any Realtors office that also handles rentals.

Check newspapers to see what comparable properties are asking. Better still, grab a newspaper that is a month or two old. Call the FRBO ads and tell your fellow landlord that you're trying to determine what to charge for your property. He will more than likely be willing to tell you what he received and how long it took to fill the property. You can also try a local REIC. Ask your fellow club members what they are getting.

Best of all, experience will let you know what to charge. However, until you get to that point, the above should keep you on track.