What to look for when a property is rented over market

[Wei Jie Yang]

Hi Gang,

I have an issue. I am looking to buy a pretty decent property in a B to B+ neighborhood in Hunstville that is currently being rented significantly higher(30%!) than what the market value is according to the PM I currently use.  It's newly renovated and they leased it out in May, which is part of the reason the rent is so high.  

What are some things I should look out for in this case? What are some things I should ask? Should I just count my luck?

[Jon Schoeller]

As with anything, you want to avoid one-offs when using comps. I would take the average of your area. You never know all o the extenuating circumstances of each lease. If 20 other comps are renting between 700 and 800/month and this one is renting for 1000. Do your numbers based on 7 to 800.