What are the real rents?
Do you think that question is funny? You shouldn’t. If you have been a real estate investor for any period of time you know that rental values can be manipulated. Here are ways;
- Charging a higher monthly rent but getting 1-2 months “free.”
- Charging Section 8 tenants more than the market will actually bear.
- High rent…but utility cost are included in rent.
- Charging a higher rent in lieu of a security deposit.
That should get your mind started. When I look at rents in a particular income property I am always curious as to what the rest of the neighborhood is getting. Curious enough that I will research the rents online and also knock on doors.
I’ve actually had sellers tell me they are getting $995/mo when every other property in a two block radius is getting $750. Well, maybe they really are. But when it goes vacant, what do you think you are going to get to replace it?
Know your true rent values. That’s my $.02.
BBQ Capital | Kansas City Real Estate Investing 
Investing in real estate is all about due diligence. If you don’t know what you are looking at, a shady property owner can make a cesspool beautiful.
-4MySales