How do i determine rents in an area?

Question

Im about to buy a duplex and when i use rentometer to verify rents it states that the average rent is $2700 for a 3/2 but duplexes with the same br count and sq feet size for some reason rents out for 1700-1800. So i went and checked numerous in the area they are all the same. But i just dont know if thats considered "under market" and if its worth to BRRRR those if they are decently renovated?
and how much should cashflow be? Is it ok to be in a negative and pay 700-1000 on the mortgage or is that considered a bad deal?

Thanks

Art Perkitny · Answer

@Yaniv Yarkony

The Annual Census, known as the American Community Survey, is a good resource to consider using.

Rents are broken down by value cohort and even by number of bedrooms

Here is an example for Cleveland, OH

John Koster · Answer

Rentometer is a pretty good resource.

Jeffery Wilen · Answer

@Yaniv Yarkony

When you are evaluating for cash flow, you should calculate as if you were renting all the units. Also make sure to include PM, Cap Ex and Maintenance.

The primary benefit of living in one unit is the financing that is available for owner occupied properties.

Yaniv Yarkony · Answer

But this is negative because im living in one of the units in an expensive city.

Bjorn Ahlblad · Answer

@Yaniv Yarkony As a long term buy and hold investor I definitely won't buy any negative cash flow properties.

Erik Hatch · Answer

You can look at websites where you would like to rent personally and compare different places.

How do i determine rents in an area?

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