All Forum Posts by: Steve Miller

Scott,

Thank you for the input.  I tend to think that there's a reason rents are what they are.  I figure if I'm buying As Is, that includes rents.  There's no guarantee for appreciation or that increasing rents wont result in tenants then leaving.  I'm doing my best to value at current rents, just having a challenge with properties selling price jiving with that.  But I guess that's the norm.  Sellers see it their way and wait for a like minded buyer... or one who isn't as informed :)     I'm sure to a small degree, there's room to raise rents but doing that as an ongoing process deters renters and makes tenants unhappy.  I'll keep looking!

Steve

I am reviewing properties for my first purchase. I’ve educated myself here (thank you BP!) for buying a 4 to 6 unit building. My questions are:

The property details list the current rental rates and generously forecast "projected rental rates".These forecasted rates are higher than the prevailing GRM and typically are much more than a 10% increase in the current rates. When you are evaluating a property to determine sales price and valuations, how do you reconcile the current rental rates vs a projected rate? For the most part, I can see a fair 10% increase, that’s normal and in line with the market place. I’m also one who believes in a happy tenant is a long term tenant.

I would also like to occupy a unit in the building as my residence. Do you still factor in the “rent” of an owner occupied unit when calculating the value and other valuations?

Thank you

Steve

I am reviewing properties for my first purchase. I’ve educated myself here (thank you BP!) for buying a 4 to 6 unit building. My questions are:

The property details list the current rental rates and generously forecast "projected rental rates".These forecasted rates are higher than the prevailing GRM and typically are much more than a 10% increase in the current rates. When you are evaluating a property to determine sales price and valuations, how do you reconcile the current rental rates vs a projected rate?  For the most part, I can see a fair 10% increase, that’s normal and in line with the market place. I’m also one who believes in a happy tenant is a long term tenant.

I would also like to occupy a unit in the building as my residence. Do you still factor in the “rent” of an owner occupied unit when calculating the value and other valuations?

Thank you

Steve