First Property Investment

[Cody Malave]

I am interested in house-hacking as an entry into the real estate world, with a specific interest of buy-and-hold rentals. Something I am curious about that I seem to be unable to find any adequate information on is determining rental estimates for multi-family property units that have either no prior rental history or little-to-no comps in the surrounding area. I could also be interested in househacking an SFH and renting out individual rooms, but again I am unsure how to estimate rental values for individual rooms as opposed to renting it as a single unit. Any suggestions or advice on where to look?

[Lore Postman]

@Cody Malave

Good question.  Like @Cory Lucas I’ve had luck finding rental comps on Rentometer, as well as Zillow, Craigslist, and others. If you share the zip code you’re looking in folks can see if their sources provide rental stats.

As you begin finding comps, it is important to remember that not all properties are created equal. Seemingly identical cookie cutter houses on the same street could have widely different rents. Study photos posted online (try Googling a specific address to find old listing photos). Does one have beautiful views while the other is average? An included washer and dryer? Extra storage? Updated (or higher end) finishes? Studying the details will help you find accurate comps.

Good luck! Do let us know if you’d like us to offer advice for a specific zip code.