1, 2 or 3 Bedroom Units?

Question

For a multi-family building (Buy & Hold - for cash flow). What is the potential market desirability (to good tenants) for 1,2, or 3 bedroom units & is the best to own?

Example:  1 bedrooms might attract singles, so less potential damage from children (but lower rent per unit). But the turn-over could be                    higher as people might outgrow it.  And demand for this small may be less.

2 or 3 bedrooms might attract families with children - more potential damage & pets (but higher rent per unit & more demand).

Nicholas Sheridan, Jr. · Answer

I think your question really depends on the location of the property. If you buy a block away from a school well you are probably going to have children regardless of the # of bedrooms. I would say that the most common would be 2 and 3 bedroom units because that is what most people are looking for

Robert Fornwalt · Answer

if you are on rentometer do a check and find out what is popular in your desired area.

Oleg Shalumov · Answer

@Mica Moore I would agree with @Nicholas Sheridan, Jr. here - location dictates how many units are the best, for example if you have an university close by or location have a lot of young professionals then studio/1 bedrooms would be very popular.

Chase Louderback · Answer

Hi @Mica Moore,

You can always reach out to a local professional property manager about the market desirability of a potential property or which bed/ba layout is preferable in the market you are looking. It all depends on your particular market and location.

Ed Matson · Answer

In general 2 BR units have lower vacancy rates than 1 BR units.

Frank Geiger · Answer

You are overthinking this. It's all about how you screen and the location of the property.

1, 2 or 3 Bedroom Units?

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