Updated over 3 years ago on .
Increasing Rents For SFR
Hi all,
Currently modeling out a couple properties for my first rental property. I'd be looking more for a longer term hold on the rental, and wouldn't have much in terms of refinancing. At current house prices, it seems very difficult to find a strong cash flowing property at 75% LTV without having at least a 5% annual rent growth. Is this feasible? Note I'm looking in a market where MF rentals increased 15% YoY, and is projected to increase 9% and then 6% over the next 2 years. These numbers make great sense with inflation and rates data.
How can I use these numbers as a gauge for how much to project rental growth over the next few years? As this is my first rental property, is it reasonable as a landlord to increase rents in line with MF numbers, in this case something like 8% next year? Or will I just piss off tenants in which case I'd be better tips or advice? Should I just model out with a super conservative 3% assumption?
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