Finding Comps – For Sale and For Rent

As a real estate investor, you can absolutely find accurate and valuable comparables (“comps”) without MLS access. It requires a more hands-on, multi-pronged approach, but it’s very effective and teaches you to see value that others might miss.

Here’s a practical, step-by-step guide for an investor.

The Core Philosophy: Triangulate Your Data

No single source is perfect. Your goal is to gather data from multiple sources and look for a consensus to build a confident estimate of value.

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Step 1: Use Free Public & Premium Online Portals

These are your new best friends. They pull data from public records and often have recent sale and listing information.

• Zillow: Your go-to starting point.

  • “Recently Sold” Filter: This is the gold. Filter for homes sold in the last 6-12 months.

  • For-Sale Listings: See what the current competition is (the “market”). Pay attention to price reductions.

  • Zestimate: Use it as a very rough guide, but never rely on it. It’s an algorithm, not an appraisal. Look at the actual sold data instead.

• Redfin: Often considered more accurate than Zillow by investors, with a better interface for data. Use its “Recently Sold” feature extensively.

• Realtor.com: Operated by the National Association of Realtors, it has reliable data and often includes MLS-listed properties.

• PropStream, Rentometer, etc.: These are paid subscription services geared toward investors. They offer robust data on sales, equity, and rental comps. A free trial can be very useful for a specific project.

How to use them effectively:

1. Draw a tight radius (0.5 miles) around your subject property.

2. Look for homes that are highly similar: same neighborhood, similar square footage (±10%), same bedroom/bath count, similar age and condition.

3. Make adjustments in your head: “This sold comp has one less bathroom, so it’s probably worth $15k less than my property.”

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Step 2: Go Straight to the Source: Public Records

This is the most reliable, but also the most manual, method. The data here is what the MLS is built on.

• County Assessor’s Website: Search by property address or parcel number. You can find:

  • Sale History: The official, recorded sale price and date.

  • Tax Assessment Value: Not the market value, but a good data point.

  • Property Details: Square footage, bed/bath count, lot size, and sometimes even building sketches.

• County Clerk/Recorder’s Office: (Often online, sometimes in-person). You can find actual deeds and documents related to sales, which can include details not on the assessor’s site.

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Step 3: The “Boots on the Ground” Approach

This is where you gain an investor’s edge.

1. Drive the Neighborhood: You can’t overstate this.

   • Look for “For Sale by Owner” (FSBO) signs and “Sold” signs from investors or flat-fee MLS services. Note the prices and contact the seller directly.

   • Observe Condition: Online photos lie. Drive by the comps you found online. How does their condition (roof, siding, landscaping) compare to your subject property? Adjust your value estimate accordingly.

2. Talk to People:

   • Real Estate Agents: Even if you don’t use one to buy, you can call a few who are active in the neighborhood. Say, “I’m an investor looking at 123 Main St and doing my due diligence. Can you share any insight on recent sales or the market here?” Many will help to build a relationship.

   • Property Managers: They have a fantastic pulse on rental comps and neighborhood values.

   • Other Investors & Contractors: Network at local real estate investor association (REIA) meetings. They often have off-market deal flow and know what properties are truly worth.

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Step 4: Find and Analyze Off-Market Comps

Many of the best deals never hit the MLS. You need to know how to value these.

• Wholesaler Lists: Properties being sold by wholesalers often have a price and an ARV (After Repair Value) listed. This gives you a direct comp from another investor’s analysis.

• Auctions: County tax auctions, foreclosure auctions, etc. Track the final sale prices of these properties to understand the discount for distressed assets.

• Direct Mail / Bandit Signs: If you see a “We Buy Houses” sign, that’s a potential comp for a distressed sale price.

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The Investor’s Comp Analysis Framework: Build Your Own Spreadsheet

You are the analyst now. Ditch the mental notes and get organized.

Create a simple spreadsheet with the following columns:

How to Make Adjustments (The “Art”):

• Bathroom: +$10,000 – $15,000

• Garage/Parking: +$5,000 – $25,000

• Condition (Good vs. Fair): +$15,000 – $30,000

• Square Footage: Use a price per sq ft ($/SF) analysis. (Sale Price / Sq Ft). If most comps are selling for $180/SF, apply that to your subject.

Your Goal: After analyzing 5-10 good comps, you’ll see a tight range for your subject property’s value (e.g., $270,000 – $280,000). This is your confident valuation.

Special Case: Finding Rental Comps (for BRRRR Strategy)

If you’re buying a rental, you need to know what it will rent for.

• Zillow / Apartments.com / Rentometer: Use the “For Rent” filters to see what similar properties are asking for rent.

• Drive the Neighborhood: Look for “For Rent” signs and call the numbers. Ask about the terms.

• Property Managers: They are the best source for what a property will actually rent for, not just what landlords are asking.

By combining these methods, you will often have a more nuanced and accurate view of a property’s value than an agent who only quickly glances at the MLS. You’ve done the deep work yourself.

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As a real estate investor how do I research “market rent” for properties?

Researching market rent is a critical skill for a real estate investor, crucial for calculating cash flow, evaluating deals (especially for the BRRRR strategy), and setting prices to minimize vacancy.

Here’s a practical, step-by-step guide to accurately determining market rent without relying solely on a real estate agent.

The Core Philosophy: Triangulate Your Data

Never trust a single source. Your goal is to gather rent data from multiple methods to find a tight, confident range.

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Method 1: Online Rental Portals (The Most Direct Method)

These websites are your new best friend. They show you what landlords are currently asking for rent, which is the most direct indicator of the market.

• Zillow / HotPads: The go-to starting point. Use their “For Rent” search filter.

• Apartments.com / Rent.com: Excellent for multi-family and single-family homes.

• Realtor.com: Also has a robust “For Rent” section.

• Facebook Marketplace / Craigslist: Be cautious here, as there can be scams, but these platforms have a huge volume of legitimate listings, especially for private landlords.

How to Use Them Effectively:

1. Be a Sniper, Not a Shotgun: Draw a tight radius (0.5 to 1 mile) around your subject property. Renters care more about immediate neighborhood than buyers do.

2. Find “Comps,” Not Just Listings: Look for properties that are highly comparable to yours. Match these criteria as closely as possible:

   • Number of Bedrooms/Bathrooms: A 3-bed/2-bath is very different from a 3-bed/1-bath.

   • Square Footage: This is a key driver of rent. Look for homes within ±200 sq ft.

   • Property Type & Condition: A renovated townhouse vs. a dated single-family home.

   • Amenities: Does it have a garage, fenced yard, in-unit laundry? These matter.

3. Track “Price Reduced” Listings: A listing that has been on the market for 30+ days with a price drop tells you the initial ask was too high. This is valuable data on the market’s ceiling.

4. Look at “Recently Rented” Listings: On some platforms like Zillow, you can filter for “Recently Rented.” This shows you what price a property actually leased for, which is even more valuable than the asking price.

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Method 2: The “Boots on the Ground” Approach (The Reality Check)

Online photos can be deceiving. You need to see the competition with your own eyes.

1. Drive the Neighborhood:

   • Look for “For Rent” signs. Call the numbers. Ask key questions: “What is the square footage?” “Are utilities included?” “How long has it been on the market?”

   • Observe Condition: How does your property compare? Is the competing property freshly painted with a manicured lawn, or is it dated and rundown? Adjust your rental price estimate up or down based on this.

2. Conduct Property Tours: Pose as a prospective tenant (ethically) and tour 3-5 of the most comparable properties. This is the single best way to:

   • See the true condition and how it compares to yours.

   • Gauge landlord responsiveness and tenant competition. If a great property has a line of people waiting to see it, you know the rent is at or below market.

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Method 3: Talk to the Pros (The Insider Intel)

These people are in the trenches every day and have their finger on the pulse of the market.

• Property Managers: This is your #1 most valuable resource. Call 2-3 local property management companies. Tell them: *”I’m an investor considering purchasing a property at [Address] and I’m evaluating the potential rent. Based on your experience, what could a 3-bed/2-bath home in that neighborhood rent for today?”* They know what properties are actually leasing for, not just asking.

• Local Real Estate Agents: Agents who work with landlords and tenants (leasing agents) have direct access to the local MLS, which has the most accurate and verified rental data. Many will share this info to build a relationship.

• Other Landlords & Investors: Network at a local Real Estate Investor Association (REIA) meeting. Other investors will gladly share their experience with rents in the area.

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Method 4: Use Data Aggregator Tools (The Big Picture)

These sites specialize in aggregating rental data to give you a broad market overview.

• Rentometer: This is a fantastic tool for a quick check. You enter the property address and basic details, and it spits out a market rent range, showing how you compare to the area. The free version gives a good snapshot; the paid version provides more detailed reports.

• Zilpy / AHRN: (For military housing) These sites also provide rent estimate tools that can be useful for cross-referencing.

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Putting It All Together: The Investor’s Rental Analysis Framework

Don’t just guess. Build a simple spreadsheet to make a data-driven decision.

Create a “Rental Comp” Spreadsheet with these columns:

How to Analyze Your Spreadsheet:

1. Find Your “Best Comps”: Identify the 3-4 properties most similar to yours in location, size, and condition (like 456 Oak Ave above).

2. Establish a Range: The best comps will give you a tight range (e.g., $2,050 – $2,200).

3. Position Your Property: Based on your property’s condition and amenities relative to the best comps, choose your rent.

   • Is your property the best on the block? Aim for the top of the range.

   • Is it average? Aim for the middle.

   • Pro Tip: It’s often better to price it slightly below the top comp to attract a larger pool of high-quality tenants quickly, reducing vacancy. A 5-day vacancy costs you more than pricing $50/month lower.

By using this multi-method approach, you will have a rock-solid, data-backed estimate of market rent that you can use with confidence to underwrite your deals and maximize your income.