It's that simple: 2/1 with a basement or a 3/1 without a basement? They are virtually in the same neighborhood.
The 2/1 is 812 sq.ft. with a washer & dryer.
3/1 is 1024 sq.ft. with NO washer & dryer
Which one would you purchase and why?
@Louis Porter Jr. I would purchase which ever one was likely to cashflow and appreciate better. Every market is different so your best bet would to look at comparable properties to see which is a better choice.
Generally I would agree with @Jason D. but I may actually disagree with him on this.
An extra bedroom is typically worth more for rent than a basement. A basement provides storage and mechanicals/washer/dryer, maybe extra living space if its finished. I would think in 95% of the cases, both for cash flow and appreciation, the bigger property with more bedrooms is the smarter buy.
Jason is correct that the right property will cashflow/appreciate better than the other...I'm taking it a step further and guessing that the 3 bedroom is that property. Is there an option to create value in the 3/1 by adding a washer/dryer somewhere? Maybe a hallway/second floor closet that you don't need?
@Louis Porter Jr. 3/1 by a mile
Of course every market is different, however in general rents are weighted much more heavily by bedrooms than presence/lack of a basement
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