Multiple 1bd 1bath units. Quality tenants possible?

1 Reply

Hello,

I am considering a 5 unit in VT half a mile from a big ski hill. It consists of one 2bd/1bath, three 1/1 and a studio. The studio is currently occupied by someone who property manages for a reduced rent. I am interested in using the larger unit personally and as a AirBNB. The numbers still work favorably (8% cap rate including 5% vacancy and CapEx) even with no short term rental income (which should be considerable). My worry is about the quality of tenant 1bd/1bath apartments will attract. This would be my first out of state unit so don't want to deal with terrible tenants from 3 hours away. Does anyone have any thoughts on this? I appreciate it.

Best,

Mike

While every market is different, I personally love 1/1 units. I find that my tenants stay longer and don't cause any problems as it is usually only one person. Often they will have their own friends wanting to move there to be their neighbors. But I think this will all depend on your area and the quality of the units. It sounds like Airbnb is also a good option for you especially if there is year round business and the city allows it though. Good luck. 

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