I am looking at a 2-family rental property. There is a funeral home in front of the property right cross the street. And there are 3 more in the corner (250 ft away). We always talk about location, location, location, is this considered as not good location for rental? Would the vacancy rate be (much) higher? The market rents for 3 bedroom is around $1,400 locally. Would the rents for this property be much lower? It is located in Massachusetts. Thank you for your reply in advance.
I would guess that funeral homes do impact vacancy. It is quite morbid to look out your front window, or to go outside for any reason and to see a funeral home each time (and everything that comes with it: hearses, coffins, distraught family/friends, toxic chemicals used for embalming, possible traffic issues with funeral processions from 4 funeral homes on same street etc.). This is probably why the property is a good deal.
A similar example is properties that overlook graveyards. Some people may find this to be peaceful and beautiful, but most people don't want to be reminded daily of the realities of life (we are all going to die).
Thank you Jay for your reply. This property sounds like a good deal on paper, which may be evened out by vacancy and low rents. I'm glad you confirm my feeling about this unique situation.