Are one bathroom properties worth it?

Miami, Florida
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Are one bathroom properties worth it?

Pedro Garcia
Miami Lakes · Member since 2023 · 9 posts · 9 votes

Hello,

I am sure there are a number of people having great success with single bathroom homes. However, I often see very attractive deals but they are 3,1 or 2,1. I am starting to think that multiple bedrooms with a single bathroom are not as attractive to renters and buyers. I suppose that my question is that it seems that these deals seem a lot less desirable than 2 bathroom homes for rentals and flips. Would my assumption be correct? Thank You

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Andy WebbPro Member
Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
3y

One bath works just fine in some markets - who are your clientele?  Not big families, then probably not an issue.

Also, we have added baths in the past - depending on the configuration of the property you may be able to find places to add a half bath or convert a half bath to a full bath.  This both adds value and widens your potential renter pool.

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  • Chris Davidson
    Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
    3y

    @Pedro Garcia you are correct that two baths are better than 1. However I haven't seen a big issue with a couple of the 2 bedroom 1 bath units I have. I prefer 2 bath units, but if I can get a deal on a single I will do it especially if there is room to add a bath down the road.

    Best of luck!

    2Reply
  • Andy WebbPro Member
    Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
    3y

    One bath works just fine in some markets - who are your clientele?  Not big families, then probably not an issue.

    Also, we have added baths in the past - depending on the configuration of the property you may be able to find places to add a half bath or convert a half bath to a full bath.  This both adds value and widens your potential renter pool.

    5Reply
  • Account Closed
    Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes
    3y

    @Pedro Garcia our 3 bed 1 bath went vacant on December 31st 2022. We put it on the MLS Jan 2 and the new tenants moved in on Jan 4th paying $200 more than the previous tenant. I wish it had 2 baths but it has only been vacant for about 3 weeks since we bought it in 2017. Definitely worth it👍

    3Reply
  • Henry T.
    Member since 2022 · 1k+ posts · 1k+ votes
    3y

    Abso-f'n-lutely. I'm only speaking from my own experience. The smaller the house the better. Less people=less damage. (2 bathooms? Double problems, no thanks). The ideal is a one bedroom house with one bathroom. Most of my 2 bedrooms is a single guy using the 2nd bed for an office. Some with mates. Nerdy tech types rule! and they tend to keep to themslves. AND in Seattle, where you're allowed (by law) to move in as many roommates as you like within HUD limits, things are sure to get cramped quickly. Sure, sometimes I'll get a family of 7 wanting to rent my studio (0 bedroom) type houses, I show it to them to not be discriminatory, but for some reason they change their mind. I'm gueeeeeeesing they find them too small. Small rocks! Small been berry good to me.

    2Reply
  • Henry T.
    Member since 2022 · 1k+ posts · 1k+ votes
    3y

    Sorry, clarify......"

    AND in Seattle, where THE TENANT is allowed (by law) to move in as many roommates as he likes within HUD limits

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    One bathrooms are undesirable for tenants and buyers. You always want to add a bathroom. 

    1Reply
  • Pedro Garcia
    OP
    Miami Lakes · Member since 2023 · 9 posts · 9 votes
    3y

    Great Information. Thank you all. It really depends on the situation. 

    1Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    It will depend on the area.

    In San Francisco where for example (where many renters must have room mates) this may not be an optimal design.

    Although in other areas with a single renter or a renter (couple), it might be good item--depending on the wants of the renters and the local competitions offering.

    If Joe down the street is offering  (2-br 2 bath) for $1,120 a month and you offer your (2-br 1 bath) for $1,110 a month, that small spread might leave you with longer time on market than average.

    Good Luck!

    2Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    3y

    I have been doing this a long time and never use absolutes in these situations.  I think we all realize that a 3 bedroom/2 bath is optimal for a rental.  However in my case, most of my rentals are in smaller communities with 1950-60s construction where the standard is a 2/3 bedroom and one bath.  Have I ever added a bath?  Not in these situations as the numbers just did not work and I have the advantage of having my own crew

    I would evaluate the property using the following criteria:

    What is the neighborhood like? Mostly one bath or 2?

    Using comparable sales, what is the difference in sales price between an one bath and 2?  What is the difference in rent between a one bath and 2?

    Once you have that information, if the numbers work go for it.  Personally, I would not being adding a bath at this time.  In many parts of Florida the permitting process itself is taking months and construction times even longer.  You could easily end up with 6-12 months of carrying costs on a vacant property which would eat up years of the projected increase in cash flow

    5Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    3y

    Never had a problem renting a 1/1 or a 2/1 . They go fast in my area 

    4Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Pedro Garcia:

    Hello,

    I am sure there are a number of people having great success with single bathroom homes. However, I often see very attractive deals but they are 3,1 or 2,1. I am starting to think that multiple bedrooms with a single bathroom are not as attractive to renters and buyers. I suppose that my question is that it seems that these deals seem a lot less desirable than 2 bathroom homes for rentals and flips. Would my assumption be correct? Thank You

     100% irrelevant. You pay less for a 3/1 then a 3/2 so you get a little less in rent, but everything rents . 90 % of the 500 or so I flipped in the Cleveland markets are one bath, and all of them rent. 

    2Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    Depends on the market

    0Reply
  • Andrew S.
    Investor · Raleigh, NC · Member since 2013 · 1k+ posts · 708 votes
    3y
    Quote from @Eliott Elias:

    One bathrooms are undesirable for tenants and buyers. You always want to add a bathroom. 

     I used to think that too and I still prefer at least 1 1/2 bathrooms (mainly because a clogged sink or toilet is not an automatic emergency).  However, over the past 10 years, just under half of my portfolio has ended up being one bathroom units.  At every turnover I investigated whether I should consider trying to add a half or full bath and every time, I end up concluding that I cannot reasonably recover the investment.  My one bathroom units command very similar rents and have very similar (short) vacancies.  

    So, while it makes intuitive sense to go for more bathrooms, if possible, in practice, my experience says that there is little or no difference - in MY particular market anyway.

    1Reply
  • Noah Laker
    Real Estate Broker · Sacramento, CA · Member since 2021 · 517 posts · 408 votes
    3y
    Quote from @Pedro Garcia:

    Hello,

    I am sure there are a number of people having great success with single bathroom homes. However, I often see very attractive deals but they are 3,1 or 2,1. I am starting to think that multiple bedrooms with a single bathroom are not as attractive to renters and buyers. I suppose that my question is that it seems that these deals seem a lot less desirable than 2 bathroom homes for rentals and flips. Would my assumption be correct? Thank You


     1/1 = Good

    2/1 = OK

    3/1 = No thanks!

    1Reply
  • Adah N.
    Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
    3y
    Quote from @Pedro Garcia:

    Hello,

    I am sure there are a number of people having great success with single bathroom homes. However, I often see very attractive deals but they are 3,1 or 2,1. I am starting to think that multiple bedrooms with a single bathroom are not as attractive to renters and buyers. I suppose that my question is that it seems that these deals seem a lot less desirable than 2 bathroom homes for rentals and flips. Would my assumption be correct? Thank You


     2/1 is attractive to the single person or couple who wants the extra room for office space or library. 

    0Reply
  • Sally FairchildPro Member
    Investor · Newport Beach, CA · Member since 2016 · 106 posts · 84 votes
    3y

    @Pedro Garcia

    Why I never buy a 1 bath.

    If the bath goes out, it needs to be fixed right now. If I have a 2nd bathroom, it still needs to be fixed ASAP, but it is not an emergency. That goes for both my personal place and a rental.

    Only way I'd buy a 1 bath was if I was going to add a bathroom from the start.

    2Reply
  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    3y

    In my area - as an apartement/condo - any MFH type unit yes. And it's very typical 

    Now a SFH is a completely different story. I don't do the 2/1 or 3/1 houses for 2 major reasons...hard to RENT and going to be hard to SELL. Most of these are older homes and a lot of time the location sucks as well

    0Reply
  • Dwayne Byrd
    Real Estate Broker · Palm Bay, FL · Member since 2017 · 175 posts · 89 votes
    3y

    We have flipped about 11 or 12 properties, and I now have my first 3/1 in Florida. It was beautifully redone and has been on the market for a while. It's knock from 90 percent of people... the 1 bath. I never plan to have another 1 bath if I can help it. 

    0Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y

    I see a lot of OOS investors mention this, especially in OH markets, but yes it is very common in OH/KY

    [email protected]859-443-4952
    Sam McCormack Realtor
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    0Reply
  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    Adding an extra bathroom to your real estate property is one of the best investments you can make. Not only will it increase the value of your home, but it will also make it more desirable for tenants and buyers. Having multiple bathrooms in a house or apartment makes life so much easier by eliminating waiting time and ensuring everyone's privacy. So if you want to make your property more attractive, adding an extra bathroom is a great move.

    [email protected]832-889-5607
    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Pedro Garcia:

    Hello,

    I am sure there are a number of people having great success with single bathroom homes. However, I often see very attractive deals but they are 3,1 or 2,1. I am starting to think that multiple bedrooms with a single bathroom are not as attractive to renters and buyers. I suppose that my question is that it seems that these deals seem a lot less desirable than 2 bathroom homes for rentals and flips. Would my assumption be correct? Thank You


     they are not easy to sell, I've neighborhood that the same lousy house that has 3/2 and 3/1 has 1 million dollar price gap among other thing.

    1Reply
  • Leo R.
    Investor · Member since 2021 · 591 posts · 695 votes
    3y

    @Pedro Garcia it depends on how you're using the property.

    If it's a 2/1, and you're renting it to a single person or perhaps a young couple, then 1 bathroom might be fine. But ,if you're renting it to two housemates or a small family, then 1 bathroom might make it a lot less desirable.  As with any business, it's critical to know your customer, and to understand whether your product matches your customer's desires, needs, etc.

    If you plan to sell the property, then yes--1 bathroom will certainly be worth less than 2+ bathrooms.

    One middle-ground strategy is to buy a 1 bathroom house that has a floorplan and plumbing arrangement where it would be relatively easy and relatively inexpensive to add a 2nd bathroom, and then add that bathroom....I've done this before, and in my case it was very successful--it completely changed the tenant demand, produced a great CoC return from increased rent, and increased the value of the property. However, the key to the success was the fact that the house had a layout where adding the bathroom was relatively simple and straightforward (no need to deal with load-bearing walls, no significant re-routing of plumbing, electrical or HVAC, etc.--it was a simple operation. If it had been a more complex process, it might not have been worth the effort.)

    Good luck out there!

    1Reply
  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    3y

    I would agree 2 baths is always better than 1 but a 4 bed with 1 bath is much less desirable then a 2 bed with 1 bath. If doing a rehab and adding an on-suite or a basement bath is feasible I say do it. I have never done this as we usually leave our basements unfinished. 

    [email protected]319-288-5382
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    1Reply
  • Daniel Patrick Glushko
    Member since 2022 · 13 posts · 7 votes
    3y

    Depends on the property… if it's a 1 bath, I underwrite using HUD rents for the area and that's who I utilize.

    0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Pedro Garcia
    3 bed/1 bath units and 2 bed/1 bath units work just fine. In the Columbus market, almost all multi-family is just 1 bath. If you can find a property with more bathrooms that would be good, but having 1 bathroom is perfectly fine. 

    [email protected]614-412-4565
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