I've seen a few properties for sell at attractive price points in the areas I'm looking to invest, but the properties are in C/C- neighborhoods, and the units are all or mostly 1-beds. I view them as too risky to have low income tenants in 1-bed units, which typically turnover more often. This would seem to create a very management intensive situation, and if turnover really is higher in 1-bed units, I'd be adding greater risk by having to find another quality low income tenant every time the unit turned. I'm not opposed to either low income or mostly 1-bed units, but not both.
However, this is all just theory. I just wanted to ask the more experienced investors on BP to make certain that I'm not passing up deals that could work. Does anyone else have experience with these types of properties to support, or counter my suspicions?
It is highly dependent on who you rent to. Some people are single and remain that way forever. I have a 7 unit that consists of 6 1/1 and one 2/1. Most of the 1/1s have long-term seniors living in them. If you rent to sketchy tenants just to fill the units, you may end up turning the units over pretty frequently whatever the size.
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