Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
Hey BP Community, Just curious about when your purchasing an apartment building what do you look for in terms of bedrooms. I prefer two bedroom units and a small percentage of 1 bedroom units. Studios are not my favorite. I have a little more difficulty in renting studios. Two bedrooms are by far more popular. Appreciate your input.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Kenneth Garrett Overall, I would want 2-bedrooms. I have properties in a college town. While there are other businesses there's a "backstop" of students for renters as well as recent college grads. Those can be great for my 1-bedroom units. If I didn't have that demographic, if it didn't skew that way, I wouldn't want nearly as many 1-bedrooms as I have. Studios can be a very mixed bag. A lot of times they end up as the "apartments of last resort" as they are the cheapest. If I was going to buy an apartment building with studios they would have to be nice, newer, almost "above market" quality studios. But I also have no interest in renting to...well..."leftover" tenants. I'm over generalizing but such is the challenge in forum responses. Mileage for all may vary!
Rental Property Investor · Spartanburg, SC · Member since 2013 · 253 posts · 56 votes
9y
For what it is worth Kenneth, I think question will garner a familiar response that you hear in RE, which is "whatever you prefer" as an investor. I haven't ran into huge discrepancy between when 1 and 2 bedrooms, but I think it would depend on overall size.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Kenneth Garrett Overall, I would want 2-bedrooms. I have properties in a college town. While there are other businesses there's a "backstop" of students for renters as well as recent college grads. Those can be great for my 1-bedroom units. If I didn't have that demographic, if it didn't skew that way, I wouldn't want nearly as many 1-bedrooms as I have. Studios can be a very mixed bag. A lot of times they end up as the "apartments of last resort" as they are the cheapest. If I was going to buy an apartment building with studios they would have to be nice, newer, almost "above market" quality studios. But I also have no interest in renting to...well..."leftover" tenants. I'm over generalizing but such is the challenge in forum responses. Mileage for all may vary!
Hey BP Community, Just curious about when your purchasing an apartment building what do you look for in terms of bedrooms. I prefer two bedroom units and a small percentage of 1 bedroom units. Studios are not my favorite. I have a little more difficulty in renting studios. Two bedrooms are by far more popular. Appreciate your input.
It varies with the market. Demand for studios in Brooklyn, Manhattan, SF etc... differs from that of some of the other cities.