Seeking Input on Rental Property Layout - Beds vs. Baths Ratio

Seeking Input on Rental Property Layout - Beds vs. Baths Ratio

Member since 2024 · 5 posts · 4 votes

As a first-time rental property investor, I am currently in the process of evaluating a potential investment opportunity and seeking guidance on an aspect of property layout. Specifically, I have come across a single-family home featuring three bedrooms and one full bath, which is shared among all three bedrooms. Additionally, there is a powder room adjacent to the living room.

I am keen to understand the market desirability and rental potential of such a layout. Would this configuration typically attract renters at all? Are properties with a single full bath for multiple bedrooms and an additional powder room will rent for tenants with kids?

Given my novice status in the rental property market, I greatly value the insights and experiences of my peers on this forum. Any feedback or advice you can offer regarding the rental appeal and marketability of this layout would be sincerely appreciated.

Thank you in advance for your time and expertise.

0Reply
111 views

2 Replies

Jump to latestLatest
  • Bradley BuxtonBusiness Member
    Real Estate Agent · NV · Member since 2023 · 1k+ posts · 720 votes
    2y

    @Mounish Thatikonda

    Three beds and one bath is less desirable than having 2 bathrooms or even a half bath. 3/1 can make some of the best purchases because they are functionally obsolete and may get passed up by many buyers allowing you to get a better price. These are value add opportunities. Find one that's been on the market for a while and has the option to add another bathroom and maybe even another bedroom. Raised foundations tend to be easier to add bathrooms because plumbing can be moved under the house such as from an existing laundry room. Calculate the cost of adding the bathroom and how that will translate to increased equity on resale or exit.  Will you get the extra rent for the additional bathroom and how long will it take to recoup the cost? Look at comps in the area to estimate how much more equity an additional bathroom will add.  Look at rents in the area are 3/2 or 4/2 renting for significantly more or are there even any in the area? This could help to reduce vacancy if you have a more desirable rental. 

  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y

    In a perfect world, sure, add another bath somewhere to make it a 3/2, but never remove a bedroom. But in the real world, with where prices are at for properties, if this is close to rent-ready, you are just going to rent it. Unless you are buying a complete rental rehab, you don't want to be spending the money to add a bathroom because it will take you years to recoup the cost on your rents.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.