Knowing the Rental Market?

In the book Dean tells you and SHOWS you how to gauge your market. Refer back to the book and I am sure you will get the answer you are looking for. But also, and I learned tis from coming from a family of contractors, contact the planning commission/dept for your city and find out whats if anything will be going on in the area close to where your property is, like new schools, building, shopping centers, anything.

If you ask they will tell you. So if you are in question do a little market research yourself and look under the rocks. I hope that helped.

I always check the local paper. How many ads are there in the For Rent section and what are the rents? Granted, this only tells me what landlords are asking for but it has been my experience that tenants generally do NOT negotiate on the rent. They either pay it or move along.

I agree with Mark. The local paper is the best place to get a feel. See how much people are asking for similar number of bdrms/baths and then go look at the neighborhood it's in. The neighborhood will make a BIG difference. Also, if you know anyone else that has rentals, ask them what they're getting. I suppose an REI Club would be a good resource, too, if it's local to you.

It's really not as risky as you might think. Everyone needs a place to live, and not everyone can afford a house. It seems to me that the rental market will keep improving as the housing market does more poorly. Remember, every day there are young people just starting out, new families being made, people retiring, students going to college, divorces happening: nothing's going to stop "life". So I think rentals are a good way to go. You'll always have a customer, and I've heard that a house doubles in value every ten years. (Don't quote me on that one)

My realtor told me that in her realtor's course they were told to buy, buy, buy when you are young, and then sell off a house per year in your retirement. I have to think about that one, but it sounds pretty good.

Good luck,
Rina

I will definitely take everyone's advice and start researching and asking questions. Not saying this is the route I am going to take but just want to get a feel for everyone's approach on this type of investment and a logical starting point if this turns out to be my best bet for the local market I am in.

Thanks very much

Greg

I agree with everyone and just resently found out that a huge live work play shopping area is coming less than 5 miles from my home...property value and rental opportunities are endless when do your city/county planning research. Just to add another option search Craiglist in your area and see where everyone is looking to rent in your area!!!

I think this is critical. It is also one of the reasons why I chose residential over commercial. Plus, a lot of people just prefer a house over an apartment (or their family size/makeup makes apartment living impractical.

My experience is limited to a few markets but I have found that there are NEVER enough SFR rentals to go around. I have had quite a few problems with SFRs but getting them rented was really NEVER one of them.

Mark, SFR. That's "single-family residence", right? (I'm just adding it to our list)

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