Oceanside, CA · Member since 2020 · 1 post · 0 votes
Hi I’m new to real estate investing and have been trying to learn as much as possible. I’ve had a lingering question about if an investor would buy a studio or a 1 bedroom house as a fix and flip or buy and hold? I currently live in oceanside California and have ran into a few properties that need some fixing but are 1 bedroom house. Any information on the subject would be appreciated thanks!
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
5y
Hi @Isaac Chanse Willoughby, welcome to the BiggerPockets forums! Good work learning and getting granular with your thinking!
This is going to completely depend on your market. In some markets (like, I THINK dense urban areas like NYC, San Fran, etc) you'll see a large market for studios, but in less dense markets you'll see a proportionally small market.
In my market there is almost zero market of people willing to pay to purchase a 1 bedroom house. They just weren't built, and when you see them they are wonky little boxes on wonky lots, and people can feel that. Instead, they'll prefer a proper house on a property lot for a little more money. Studios, similarly, rarely exist and when they do come up the only shot they have at selling for a high value is if they are well-done luxury in a well-done luxury complex.
This may be TOTALLY different in your market, which is one of the things that makes real estate such an interesting game!
Welcome to BP! There is always a demand for single bedroom units here in SD. I've been showing my investor clients a lot of properties in Oceanside. It's one of if not the last SoCal city near the ocean that is way undervalued. There is going to be more demand for a 3 bed 2 bath but 1 bed 1 bath units are still selling. This year around 90 have sold for an average price of $423k. Let me know if there is anything I can do for you.