Investor · Orange County, CA · Member since 2019 · 11 posts · 1 vote
There is a turnkey home im eyeing in the SoCal area. Its 2100 square foot with 6 bedrooms and 2 bathrooms. Its located in a decent neighnhorhood and close to a major freeway for convenience and commuting benefits. What makes me scared is the bathroom to room ratio. The master bedroom has its own bathroom. The other 5 rooms have to share one bathroom with dual sinks, a tub shower, and toilet. Another thing making me anxious is the regular bedrooms are 12 X 10. I feel like im buying a mini dormitory here. The seller is willing to throw in a free samsung stainless steel large fridge with it too. Ill be buying this house all cash and renting it out immediately. The price is really good and i find myself wanting to pick it up before someone else does. I just dont want to shoot myself in the foot.
@Aasim T Bickiya I would start by checking county records to make sure its listed correctly. Where there any rooms converted without permits? It sounds like a "PadSplit" home? Why do you think you will cashflow on this home? Yes you will, with all cash, but why are you putting all your eggs in one basket? Come check out this meetup in a few days and get some more answers to your quesstions:
@Aasim T Bickiya I would start by checking county records to make sure its listed correctly. Where there any rooms converted without permits? It sounds like a "PadSplit" home? Why do you think you will cashflow on this home? Yes you will, with all cash, but why are you putting all your eggs in one basket? Come check out this meetup in a few days and get some more answers to your quesstions:
No none of these rooms were added. It actually was built as a 6 bedroom 2 Bath SFR. Its a one story home at 2100 SqFt. I have other SFRs where I rent them out to small families and they pay me rent on time. I want to do the same here. I dont mind if the family is large, i just want to pay rent on time and not mess up the house. My only concern is the bathroom to bedroom ratio, would that be a major issue? im actually not putting my eggs in one basket but this will be the last SFR my family will buy likely for a looong time. I want to pick it up before prices jack up again.
Your potential tenants are likely to have the same concerns. That might impact your prospect pool and what they are willing to pay in rent. Are there other similar homes in the area? You could check them out to see what they sold and/or rent for.
You are likely to attract a large family since it has 6 bedrooms. Large families can be multi-generational which can work very well. They can also consist of a stampeding herd of kids that will apply heavy wear to the home. You can't discriminate on family status, so keep in mind you might have higher turnover and repair costs in some situations.
No permits required. The house came built as a 6 bed 2 bath houses. Its a SFR track home. there are other 6 bed 2 bath houses in the neighborhood also. I want to rent it out to a family that will pay rent on time and not mess up the house.