Updated over 9 years ago on . Most recent reply
Does Anyone Like 2Bd SFRs for Buy and Hold?
I have been considering purchasing a 2 bd single family. Are they worth buying? They are pretty cheap but are they hard to keep rented? Anyone have experience with these? I would think that they have high turnover.
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In my market (Indianapolis) most of my investors prefer 3 bedroom homes because they cater to families, which is going to be the biggest rental demographic. The 2 bedroom investors who have the best success here are usually targeting seniors or single professionals... usually low-maintenance, like a condo or town home. My experience with 2 bedroom homes is that people don't stay as long because they grow out of them... higher turnover and potentially higher days on the market because the demand is different.
On the flip side... we have a lot of 2 bedroom bungalows in the historic areas here and if you purchase the ones with a lot of attic space, you can create a master suite in a finished loft area. These can usually be purchased, converted, and rehabbed for less than the cost of purchasing and rehabbing a three bedroom. I have a successful investor who specializes in this.
At the end of the day, every market is different. It is going to depend on the city that you live in.