Pros and Cons of Studio Apartments

[Eddie Quispe]

Hello everyone, I am looking at purchasing an apartment studios complex. It was a hotel repurposed as a studio apartments. Anyone has had experience with this property type and is willing to share their perspective in general? Thanks in advance BP community!

[Spencer Gray]

It depends on the market and your target demographic. The plus side is that your $/sft is typically the highest compared to other units while the nominal rent is cheaper than most 1 bed units.

The downside is that turnover can be higher as studio residents tend to be a bit more transient adding some additional turn expenses. 

I would take a hard look at comps of other studios in your immediate sub market.