Does This Rent Seem Low To You?

[Ryan Mattson]

Hi All, 

We have yet to close on our first deal, and I am being very cautious when it comes to our first purchase. That being said, I've found a 4-Plex currently listed at $290k, all with 3 Bed/1 Bath units. (Each one has 1100 Sq. Ft.) I requested information from my realtor about the rent rolls expecting them to be in the $900-$1000 range, but found out each one is currently rented for $700 per month in a non rent-controlled area. I understand we are currently in a seller's market and the owner is surely trying to get top dollar for their property, but that still leaves the question as to why the rents are noticeably lower than market for that area. Any opinions? Thanks!

-Ryan