No Rental Comps?

[Will43]

I have a single family investment property in a PUD. (Very nice area)

I was unable to find any rental comps.

I checked the MLS, newspaper, realtor.com and another Website.

In this type of subdivision, there may be 1 if you are lucky.

It is very rare for investors to purchase in this area.

In the past, I have stopped at Real Estate offices and asked if they had any single family rentals.

I was told another appraiser turned this one down.

Does anyone have any ideas?

 

[Scott Kibler]

Find the most similar area with available rental information and go from there.

Disclose in the report the due dilligence you did to find rental information in the development and why you think the rental comps you used are the best available.

Disclose your opinion of the credibilty of your rental analysis.

You can only play the cards you are delt.

 

[CANative]

Are you trying to come up with an income approach or just an estimate of market rent?

If the lender just wants an estimate of market rent, don't worry about finding SFR's which have been purchased by investors seeking an income stream.

If this is a PUD, call the HOA and find out how many of the homes in the project are rented. See if you can get a list of addresses of those which are rented. Ask if there is a property management company that has properties in the development. Unless the PUD is tiny, you should be able to find enough rented homes to come up with the estimate. Call a number of property management companies and get rental data for competing areas.

It's time consuming in non-urban areas. I charge more for my areas than my brother charges for his areas.

 

[JSmith43]

The investor usually only requires the comp rent form to be filled out if the buyer needs the NOI of the place included in the buyer's qualifying ratios.

This may or may not be the case. Some processors shotgun it & order on a worst case scenario. So if you are really strapped for data, I'd call the processor & double check that it is absolutley necessary to have the comp rent form for the buyer to qualify.

There was a thread on comp rent schedules. It turned into a mass confession as to what various people charged.....not quite a conspiracy, more of a gripe session.

It's a loser at $100 extra unless you already have a file full of rental comps.

 

[Will43]

Originally posted by rogerwatland@Mar 9 2005, 11:33 AM
So if you are really strapped for data, I'd call the processor & double check that it is absolutley necessary to have the comp rent form for the buyer to qualify.

It's a loser at $100 extra unless you already have a file full of rental comps.

This seems like the rate most lenders pay. <_<

I think this will be more work then the actual appraisal.

Also, I was thinking the same thing about calling the processor.

My neighborhood is the same way. To my knowledge, there is one rental.

The last time I did one of these was very time consuming. I used the Newspaper and luckily found some rentals in the area.

 

[Mike Garrett RAA]

You can't make chicken soup out of chicken poop! If there is no data for that area...find another area.

 

[Randy Beigh]

I agree with Roger, to start with the processor.

I doubt the rental market cares if the home is in a PUD. In fact, it could be the other way around. I would check with the homeowner's association to see what they say about rentals. The CCR's may have restrictions on them.

For rentals, I would go wherever it takes to find SFR rentals.

This project doesn't sound that hard to me. You may have underbid it, but so be it.

 

[Will43]

How do you find rental comps? They are available in the MLS in some areas.

However, there are few rentals in these types of subdivisions.

My old mentor used rentals that were advertised in the Newspaper. I was thinking that these houses are not actually rented.

You guys are right. This would be easy if I had the rentals. I went through about 100 sales in the MLS, but I found 0 rentals.

I could call rental companies. However, most will not give out any information.

 

[CANative]

Offer to pay them a fee for each subject property they supply rental comps for.

$25 or $50. Add this fee to your base rent survey fee. That's what I do. I usually get a printout of comps in about 30 minutes.

This doesn't work in all areas.

 

[JSmith43]

Do you have a special classification in OH for non homestead? MLS may not say rented, but if taxes indicated non homestead rate, it probably was rented. Call that agent. Greg is right. Pay off the property managers & move on.