Investor · San Antonio, TX · Member since 2016 · 90 posts · 28 votes
We currently own some four plexes and a duplex. We are looking to expand to bigger multi family properties. I’ve seen a few properties where all or majority of units are only 1 bedroom. My initial thought was to stay away from them because I feel like the turn over will be higher with only 1 bedroom. Multiple bedrooms are more conducive to families, this less likely for high turn over, in theory.
Am I correct in my assumption?
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
8y
If it is an area that supports that type of demographic, then yes, 1 bedroom units can be great. Areas with a lot of young professionals is especially solid.
Investor · Indianapolis, IN · Member since 2017 · 62 posts · 38 votes
8y
@Larry H We actually like 1 bedrooms in the market we are in which is a suburb of Indianapolis. In this particular market there is not a Lot of inventory of 1beds and this they can demand rents very near that of 2 bed 1 bath units. Form our experience in this market they have had no more turn than the 2 beds. Mind you we’re in C+\B- assets in A- neighborhoods. Certainly investigate the market, but bottom line don’t run just due to them being 1 beds you may find a real need which the property could fill.
Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
8y
Even if the area is not ideal for a lot of 1 BR then just underwrite a little higher R&M and a little higher vacancy to account for more turnover. But generally I would say I prefer properties with a larger percentage of units being 2/3 BRs.