The Money Mustache Community

Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: tralfamadorian on October 16, 2013, 09:36:24 AM

Title: Determining historical rent prices
Post by: tralfamadorian on October 16, 2013, 09:36:24 AM
Hi guys:

I just found MMM a few weeks ago but the site lines up perfectly with the way that I was brought up to think about money and FI.  Love this place!

I have one rental property and am currently saving for my second.  My immediate area is a doable but very competitive market for finding 1.5%+ rentals so I've started looking out towards other nearby large towns/small cities.  There are a few that look like they have potential, however, I don't have the experience in those areas to know off the bat if the rents are rising or falling over time.  I could ask a realtor but I don't like taking someone's word for it and would rather see the data myself.  How do you all make this determination?  Any sites out there that are good for finding this info?
Title: Re: Determining historical rent prices
Post by: arebelspy on October 16, 2013, 11:43:24 AM
The past rents don't matter nearly as much as the future rents.

Look into how the area is doing economically and population-wise.  Is the amount of people there growing, or shrinking?  Are new businesses there opening or closing?  How is the median income for the area shifting?

Rents are a population of supply and demand.  Will there be more demand in the future?  Are builders building there (a good indicator of future growth)?