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Message
Best way to gauge rent for investment lroperty
Posted on 8/10/16 at 9:09 am
Posted on 8/10/16 at 9:09 am
Looking into buying a rent house in mid city (Baton Rouge) only worrisome thing is I the house is 2 bedrooms. This would be my first investment property and I'm having trouble determining how much I could charge for rent. I have looked at realtor.com and Zillow for comparable listings but nothing really looks the same.
The house is 1919 sf and my note would be around $1,000. I wouldn't plan on putting much money into the house for renovations except for some landscaping and a new fence. Any suggestions would be greatly appreciated. Thanks
The house is 1919 sf and my note would be around $1,000. I wouldn't plan on putting much money into the house for renovations except for some landscaping and a new fence. Any suggestions would be greatly appreciated. Thanks
6
Posted on 8/10/16 at 9:22 am to DzNtz
I would start at 1500 per month. That's 750 per room. You might get 1600.
Posted on 8/10/16 at 9:27 am to DzNtz
You going for college students or a family?
I too felt I had a better house than what was being offered in the neighborhood, so I priced a bit higher. But I couldn't go much higher. Like $50-$100 more a month than the comparables.
Only advice I can really give is to have a nice cushion between your note and your rental income. Taxes, maintenance, and just general bullshite comes up and it's never fun.
Look up the 50% rule and the 2% rule. If you can't satisfy those rules, don't do it. Trust me. It's not worth the head or heart ache.
I too felt I had a better house than what was being offered in the neighborhood, so I priced a bit higher. But I couldn't go much higher. Like $50-$100 more a month than the comparables.
Only advice I can really give is to have a nice cushion between your note and your rental income. Taxes, maintenance, and just general bullshite comes up and it's never fun.
Look up the 50% rule and the 2% rule. If you can't satisfy those rules, don't do it. Trust me. It's not worth the head or heart ache.
Posted on 8/10/16 at 9:59 am to DzNtz
quote:
my note would be around $1,000
Does this include insurance/taxes? Our commercial loans do not have escrow accounts and I have to pay that separately. If not, you will need more than $1,500/month.
As far of the 2 bedrooms go, I personally don't seek them out but if there was a deal out there, I would take a look. It sounds like that house is a fairly expensive prospect for a first rental. Let us know what you choose to do.
ETA: I will usually drive around an area first and call on every for rent sign I see. Ask about bedrooms, baths, sqft, etc.. That will give you a good idea of where you need to come in at to be attractive to renters.
This post was edited on 8/10/16 at 10:46 am
Posted on 8/10/16 at 10:39 am to DzNtz
Just being able to pay your monthly note is not a good measuring stick, especially if it's a 30 year note.
Check craigslist and hotpads for rentals too, those two and Zillow is what I use. You can also check local property management companies listings. Finally, call a property management company and tell them you are considering letting them manage your property. They may give you an estimate on what it would rent for.
Check craigslist and hotpads for rentals too, those two and Zillow is what I use. You can also check local property management companies listings. Finally, call a property management company and tell them you are considering letting them manage your property. They may give you an estimate on what it would rent for.
Posted on 8/10/16 at 1:00 pm to DzNtz
around $1 per sqft is usually a good starting point. My condo is 1400sqft and I get $1400. Try getting $1900 and if you have trouble from there just lower it until someone bites.
My condo is also a 3br. A 2br might be a little lower.
My condo is also a 3br. A 2br might be a little lower.
This post was edited on 8/10/16 at 1:05 pm
Posted on 8/10/16 at 8:30 pm to StringedInstruments
2% rule doesn't work in a lot of parts in BR
Posted on 8/10/16 at 9:53 pm to jimbeam
Why not?
Posted on 8/11/16 at 10:21 am to DzNtz
I search on craigslist for similar houses and see what they are renting for.
Posted on 8/11/16 at 7:31 pm to bobaftt1212
Realtor.com is also another source.
1%-2%.....depends.
Maintenance can vary a lot depending on age and condition of property.
1%-2%.....depends.
Maintenance can vary a lot depending on age and condition of property.
Posted on 8/12/16 at 8:53 am to nogoodjr
realistically, its probably not near as unique as you think --
find the few closest comps you can, and adjust a little based on the propertys comparative pros and cons.
find the few closest comps you can, and adjust a little based on the propertys comparative pros and cons.
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