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#68089 - 02/09/07 01:17 PM
Rent
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Member
Registered: 07/24/05
Posts: 147
Loc: California
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I was just wondering how could you figure out what a certain property would rent for. I want to invest in some property's and get a cash flow from them but I need to no how much I should be expecting to get rent from each property so I can do my calculations properly.
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#68090 - 02/09/07 02:34 PM
Re: Rent
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Major Contributor
Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
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Ask your Realtor! Originally posted by mystic: I was just wondering how could you figure out what a certain property would rent for. I want to invest in some property's and get a cash flow from them but I need to no how much I should be expecting to get rent from each property so I can do my calculations properly.
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#68091 - 02/09/07 09:21 PM
Re: Rent
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Member
Registered: 07/24/05
Posts: 147
Loc: California
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I don't want to ask my realtor, I was wondering if there was some sort of website or something. Like how would the realtor figure out the rent I should expect? I'm not looking to buy right now i'm a loan officer right now i'm waiting for a few more of my deals to fund so i get the money i need to buy this investment property.
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#68092 - 02/09/07 11:42 PM
Re: Rent
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Major Contributor
Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
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The Realtor in that area will likely know what the rents are going for if that agent deals with investment property. The Realtor know ths because he or she is a professional and that is what they do for a living. So why don't you want to ask your agent? Could it be because you don't have an agent? Originally posted by mystic: I don't want to ask my realtor, I was wondering if there was some sort of website or something. Like how would the realtor figure out the rent I should expect? I'm not looking to buy right now i'm a loan officer right now i'm waiting for a few more of my deals to fund so i get the money i need to buy this investment property.
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Paul Oaks Oaks Real Estate Group
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#68093 - 02/10/07 05:23 AM
Re: Rent
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Member
Registered: 11/17/05
Posts: 369
Loc: Cincinnati
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Originally posted by mystic: Like how would the realtor figure out the rent I should expect? First if it is in an area that I own property in I know the rental amount that I and the property owners around me charge. I also know the General conditions of the properties near me that effect the rent. If the property is outside of my direct area I network with property owners and a Lawyer that works in the area and her specialty is eviction for the county I work in.
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#68094 - 02/10/07 07:07 AM
Re: Rent
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Member
Registered: 11/30/06
Posts: 64
Loc: Orange, CA
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If you’re a loan officer, try asking one of your appraisers. They have to do a rent analysis on any NOO loan they do. So, they should have a good ballpark number for you.
Also, you could try sites like Realtor.com, look in the local newspapers, Green Sheets, Recycler, etc.
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#68096 - 02/15/07 09:52 AM
Re: Rent
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Member
Registered: 05/12/04
Posts: 22
Loc: des moines ia usa
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Many good ways to find what a property should rent for. A quick a not always accurate way to calculate gross rent is multiply property value by .8% so a $100,000 house would rent for $800. But really checking the comps is a much better way to approximate rents. I agree with Paul contact your Realtor. Good Luck happy investing. Http://www.desmoinesdownpayment.com
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#68097 - 02/15/07 10:28 AM
Re: Rent
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Member
Registered: 11/30/06
Posts: 64
Loc: Orange, CA
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I wished the .8% approach worked here in Southern CA, but unfortunately it’s not even close.
As the old saying goes -- “All real estate is local.”
: )
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#68098 - 02/15/07 07:15 PM
Re: Rent
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Junior Member
Registered: 02/15/07
Posts: 9
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Paul is right. "So how do we get to Carnegie Hall?" The hippie says, "Practice, brother, practice." The author of one self-help success book says "I suggest you take a cab." That's when we start thinking we could use some help from a real estate agent.
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#68099 - 02/16/07 01:12 AM
Re: Rent
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Member
Registered: 07/24/05
Posts: 147
Loc: California
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besides the .8% i'm sure theres some other sort of percentage i could work with that works for here in southern california. Does anyone no of that percentage?
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#68100 - 02/16/07 08:37 AM
Re: Rent
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Member
Registered: 11/30/06
Posts: 64
Loc: Orange, CA
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Greetings Mystic,
Where in SoCal? Every area is going to be completely different.
As I’m sure you know, Pacific Palisades (for example) isn’t going to be the same ratio as say Hemet.
I have seen many areas that aren’t going to be much over .4%, and other areas that are much less.
Also, are you talking SFRs? Condos? Multi-unit? Mobiles? What price range? Etc., etc. It’s all going to make a difference.
There have been a lot of good suggestions posted above on how to get the number you’re looking for. The simplest being what Paul suggested… ask a Realtor.
I just don’t think you’re going to find a magic formula that works across the board in every situation.
I’m not trying to be rude, but aren’t you a licensed appraiser? Or, at least took classes to get your license? If so, didn’t they teach how to do rent analysis? Just curious.
My 2¢
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#68101 - 02/16/07 01:01 PM
Re: Rent
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Junior Member
Registered: 02/12/07
Posts: 2
Loc: West Hills, CA
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Another way to go is to look in the paper, Hee in so Cal I have a 2 bedroom house 900 Sq Ft aproz that we rent for 1260 a month plus utilities...
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#68102 - 02/16/07 01:25 PM
Re: Rent
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Member
Registered: 11/30/06
Posts: 64
Loc: Orange, CA
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If I may ask, what is that property worth? It would be interesting to see what the rent-value ratio is on it.
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#68103 - 02/17/07 12:35 AM
Re: Rent
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Member
Registered: 07/24/05
Posts: 147
Loc: California
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no i'm not a licensed appraiser i'm a full time loan officer. I just wanted to get a feel of it but now with all your answers i get it and now no wut to do. I'll just wait till the money is saved up then contact an agent and ask him and make him my agent then eventually buy the property through him.
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