Posted by Todd_OH on March 31, 2002 at 21:51:01:
Craig:
Your suggestion for Kathleen is VERY insightful,
and better than the standard “check or call other ads in the paper” (which is also a good idea).
A lot of times the property we have available may not have anything close to the area for rent NOW, but maybe it did a few months ago…
Thanks,
Todd_OH
rentals - finding market value - Posted by Kathleen
Posted by Kathleen on March 31, 2002 at 20:44:05:
I am purchasing a house as a rental in Baltimore City, but I don’t know how to find what the house would rent for. Most are not listed on the Multiple List. Where could I find that information by neighborhood?
Also, is there a formula to use when determining what to offer for a house to be used as a rental? I haven’t made the offer yet and won’t until I know what it would rent for.
Re: rentals - finding market value - Posted by SCook85
Posted by SCook85 on April 03, 2002 at 08:17:18:
Kathleen,
Rentals in Baltimore are hot now. People are paying top dollar because there are not many good quality rentals available. This is why you don’t see many on the MLS. This has been a sellers market for quite some time now, and tenants have been buying. Rents have increased by at least 25% and in some cases more over the course of the last 3 years. Depending upon where you you are actually looking to buy, you may be surprised at what the homes will rent for.
Happy Investing,
Steve
Re: rentals - finding market value - Posted by David Krulac
Posted by David Krulac on April 01, 2002 at 18:55:58:
check out the newspaper ads, including the Sunday Sun and the hud fair market rents:
www.huduser.org/datasets/fmr.html
David Krulac
Central Pennsylvania
Re: rentals - finding market value - Posted by David H
Posted by David H on March 31, 2002 at 22:09:41:
In California, we have www.realfacts.com to provide us market analysis. Maybe there is something similar in the Baltimore area.
Re: rentals - finding market value - Posted by Craig (IL)
Posted by Craig (IL) on March 31, 2002 at 21:39:34:
Some appraisers will do this for a fee. I don’t trust the accuracy of these appraisals, and I don’t want to pay that fee.
One thing I have done is a bit time consuming but it works. I go to my local library and get old “For Rent” ads from newspaper archives. Then, I call those numbers and ask those landlords what they got for it, about the unit, and about how long it took to rent.
I’m upfront with the person who answers and just expain what I am doing. I find all the answerers to be courteous and helpful. You want newpaper ads 2-6 months old; don’t go for the most recent ads since they may be not rented yet.
A second thing you might do is if there are any large rental complexes in the area, ask them what they are getting. Good-sized complexes in smaller or midsize areas may define that market.
Re: rentals - finding market value - Posted by GL(ON)
Posted by GL(ON) on March 31, 2002 at 21:30:48:
Look for similar rentals in the same neighborhood. Go and look at a few if necessary. Usually you can get a good idea from the classified ads in the newspaper.
I wouldn’t pay more for a rental property than it will bring in as rent. In other words, I expect positive cash flow. This is not easy to find in a single family dwelling. Usually you need to buy an apartment house to make anything on the rent.
BE CAREFUL! - Posted by Nate(DC)
Posted by Nate(DC) on April 01, 2002 at 21:50:40:
This is not an issue with your comment in-general, but rather in-specific vis-a-vis Baltimore City.
There are lots of really rough neighborhoods in Baltimore City where an investor would have NO HOPE of getting the HUD FMR from a market-rate tenant. The only way one can get the FMR in those areas is to get a Section 8 tenant - which is okay, since they make up the bulk of the rental market in many urban neighborhoods of Baltimore - but if Kathleen was not planning to rent Section 8 she should not assume she can get the FMR’s from a rent-paying tenant, especially if the house is in a less desirable area (which frankly is about half the city).
NT