if everyone drops rent prices real low, I want to still be able to be better then the competition. 

Rent comps: 1550-1600/ moTax: 2900Insurance: 790/ yrWill offer: 141K  ( competitive area)Estimate work: 15KPutting in 40% down Plan : buy and hold and pay off in 10 yrs. 

The reno's are part of your marketing to keep your units competitive. 

Hey guys,My partner and I were having a conversation about which approach is better: either buying a rental property or building a complex with the same amount of capital e.g $500,000.To me, the analysis makes more sense to build a property in an ideal city and rent higher than to buy an existing rental property: reduced repair costs, city tax incentives, competition among contractors/builders to build the most units for your money.Thoughts?

So your competition isn't just investors, it's average people who can pay the "emotion" premium.

We monitor listings in the vicinity of our properties (even been known to send folks to look as interested tenants) to track the "value" of our offering in the context of our competition and market demands.If both units are in the same location (or even building), perhaps the 2-bedroom is a better fit for the neighbourhood and clientele or has more appealing decor or layout.If one of the bedrooms in the 3 is small, you could try advertising it as a 2-bed plus office and see if you can get $975   (better than sitting empty).

As the private market grows more and more competition will be coming and this will control rates especially for the properties that have never flooded and are sitting at a higher elevation.

But the market is heated up and competitive and a lot of folks are starting to rely on appreciation to make their pro formas work. 

HML right now are VERY competitive but you need equity..

You won't find the word "cash flow" or "income" under 'Our Competitive Strengths' or under 'Our Business and Growth Strategies' sections.