The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Jon Bon on August 23, 2018, 11:20:34 AM
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Would you rather have a rental property with:
2 bedrooms and 2 bathrooms
or
3 bedrooms and 1 bathroom.
Tell me your reasons you prefer having one over the other.
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Pro Cons
2 bedrooms and 2 bathrooms
Tenants: 2 (less people to break stuff, maybe higher income/more stable) or 4 (more tenents to pay rent)
More appealing for sale to resident / homeowner later.
or
3 bedrooms and 1 bathroom.
More rooms to rent. Less bathrooms to maintain/clean.
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In my market I'm not sure a 2/2 offers any advantages so I would go with 3/1. I mainly do SFR in working class neighborhoods of St. Louis. Most of my market is families. I could see a 2/2 being very beneficial in roommate situations though.
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I have an aversion to just having one bathroom in a rental. If I ever need to do repairs on a bathroom I dont literally want to be shit out of luck!
Sounds like you guys kind of have a same ideas I do. When I think 2 and 2 I tend to think higher end and newer build. Versus odds are a 3 and 1 is an older building.
In my hypothetical scenario.
3 and 1 is a family with more wear and tear on the unit and less income potential.
2 and 2 is 2 different people who want to live together but not share a bathroom, so more likely 2 full time jobs here.
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Depends on your market. However, in many places 2 beds can be very difficult to fill and keep rented.
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I have a 4/2 college rental. It rents for $2340/month. A 2/2 would rent for $1300. A 3/1 would rent for $1500. A 3/2 would rent for $1800.
Typically it's easier to add a bedroom in comparison to adding a bathroom. As a result, I would be more likely to buy a 2/2 and convert into a 3/2.
If you are adding bathrooms and bedrooms make sure the house is on city sewer or the septic is large enough to handle a larger amount of people living there.