I'm just starting on this REI journey. My husband has a property for his business (chiropractor). There is a 1000 sq ft space in the basement that we are making into a rental to get our feet wet. We go back and forth on whether it would be worth it to make it a 2bd instead of a 1bd. It would probably be an additional $5k for the 2nd bedroom (need egress window). I just don't know if a young family would rent under a business versus a young professional or young couple who only need 1 bedroom. Any thoughts or advice would be greatly appreciated.
I would go typically go with two beds. A young professional or young couple will often prefer having the ability to have an office space or guest bedroom so that would be of value, so it's not just families that would be looking for a two bed. It's all market dependent though. Look around your area at rental rates for both. If it only costs an additional $5k, but rents for $100 more that's a 24% annual return on that.
How much more rent would a 2nd bedroom bring in? How quickly would the 5k be repaid? If you screen the folks right, you can get a great tenant. I would use a 3rd party to screen, worth it IMO, and the 3rd party would be able to find you a good tenant with a list of questions for you and check previous rental history. Getting your feet wet, allow someone else to do this stuff for you.
I would think the cost benefits of a 2nd bedroom would be great!
I agree that it’s worth it. If you have 1000 ft.² available, you might as well.
Thanks everyone! I guess I need to do a little more research on the rent difference between a 1 and 2 bedroom in my area.
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