🧑‍🎄🎄 the 6th Day of Real Estate Christmas

The 6th Day Real Estate Investing Christmas, and today we’re talking about one of the most important numbers in underwriting.

Market rent.

Everyone throws numbers around on pro formas, but the real question is simple.

How do you actually know what a unit should rent for?

Here’s the exact process I use when I’m looking at a market I don’t know well.

First, apartments.com.
I want to see what is being advertised right now. Real units. Real prices. Real competition. If your deal needs $2,000 a unit, you better see other units leasing at $2,000 in the same market.

Second, Rentometer.
For about $100 a year, you get a fast reality check. Average rents. High end. Low end. And a list of comparable rentals. This helps you avoid underwriting off a single data point.

Third, CoStar, if you have access.
It’s powerful, but expensive. This is one of the reasons we provide CoStar reports inside the Deal Room. You don’t need to pay $1,000 a month on your own to get professional level data.

And finally, the most overlooked step.

Calling local property management companies.

I’m listening for one thing only.
An unqualified yes.

If they say, “Yeah, $2,000 all day long,” great.
If they say, “We could try it,” that’s a no.

That’s how you protect your underwriting and your investors.

If you want help pulling rent comps, CoStar reports, or walking through this process on a real deal, that’s exactly what we do inside the Deal Room.

Happy day six!
Day seven coming tomorrow.