How To... in West Sacramento>Question Details

Jm888, Other/Just Looking in Concord, CA

How to estimate the market rent for any SFR? How would an appraiser do it? How is rental market in West Sac? Vacancy High? How to learn more?

Asked by Jm888, Concord, CA Sat Oct 30, 2010

Background:
My wife and I are looking for investment properties to hold for long term... possibly in West Sac. We are trying to learn as much as possible before purchasing the 1st one in 6 months.

After reading FNMA Selling Guide, I believe our credit scores, LTV, DTI, and reserve should qualify for an investment property loan.

Possible Approaches:
1. look through craiglist rental ads
2. contact property management companies and ask
3. place a dummy rental ad

Your help would be much appreciated.

Help the community by answering this question:

Answers

4
Hi - I think looking through craigslist and contacting property management companies or even just looking on their websites for current rentals are both really good starts - the rental market can change in six months but again should give you a good idea of what rents are in the area. There isn't one centralized place to look for this information but craigslist tends to have the most information in one place.

You asked how an appraiser would estimate market rents - typically they will contact both owner/landlords and property management companies and will do a "rental survey" to get a sense of what a particular property type will rent for in a neighborhood. They place most of their weight on recently rented properties because until something is actually rented - just a rental listing is of limited value.

It is better to think of the potential rent as a range and not as a fixed number - some of the things that create variability in the rent is if the landlord pays for some or all utilities, if the tenant is expected to yard maintenance or if the landlord contracts that out. Rent for the same type of house might vary by over $100 a month if the tenant is paying all utilities and responsible for taking care of the yard over one where that is included in the rent.

I think West Sacramento can be a very good investment neighborhood especially since much of the city is in close proximity to Downtown Sacramento.
1 vote Thank Flag Link Sun Oct 31, 2010
Hello,

I use two methods in Sacramento county the Section 8 housing guidelines show 2 bedrooms at a maximum of $1046 per month for a house but non section 8 rentals are generally at $850 per month. It really depends on the demand in any particular area. If you are purchasing a property you can ask the appraiser to do a rental survey which they will charge you for and will give you the market rents for area. ie they ask the neighbors what they pay for rent and look on craigslist.
0 votes Thank Flag Link Thu Jan 20, 2011
Hi,

I was looking for some tool for estimating the rents in certain area - and the best I found so far is rentometer.com . Hope that helps a bit.
0 votes Thank Flag Link Wed Nov 24, 2010
Thanks Carolyn.

Your experienced and knowledgable answer is much appreciated.

James.
0 votes Thank Flag Link Mon Nov 1, 2010
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