1 bedroom 4plex-good or bad investment

3 Replies

I am currently vetting a 4plex that is made up of 1 bedrooms. Historically speaking, I have found 1 bedroom units to be a bit more difficult to rent out. Has anyone else found this to be true?  Should I shy away from such small units?

My 1br units were usually easy to rent though hard to keep people in long term.  I averaged 14 months across the 2 1br units I owned.

@Nicole Flakes What do the numbers tell you?  Are you accounting for 8.1% vacancy?  8.1% is 1 empty month per year per apartment.  

How do you fill your apartments?  If you are paying a realtor on top of vacancy, then make sure that is accounted for.

Thank you for your insights! Honestly the numbers tell me that the property is overpriced but I was looking to negotiate that part to a more acceptable rate of return.  As far as accounting for vacancy...the info you gave is exactly what I was looking for! So thank you. I will take this info into account going forward.