To Buy A 1 Bedroom Duplex Or Not

[Randall Kates]

I Was Chatting With An Investor Buddy And He Stated That He Wouldnt Touch A 1 Bedroom In A Lower Middle C Class Area Because It Wont Attract Enough Tenants And When It Does It Will Be Transitional. He Would Much Rather Invest In A 1 Bedroom In A Hot Millenial Neighborhood Instead.Do you invest in 1 Bedroom Units In A   C   Class Area In Your City Why Or Why Not.

[Joseph Torres]

I too agree, multi-family is the way to go. You are spreading the risk across multiple units. That said, I own a duplex that have shotgun style 1b/1ba units. Had a crazy amount of interest when I listed them for rent. Here is where it gets interesting. They are in a solid B- possibly touching on C location but, it is right near a hot DT area. The rent is cheap enough to attract many renters and I can then select the ones I like (single ppl, preferable single female). I'm doing right around 30% CoC a month. I may have high turnover every year but with the interest I had last year I'm not to worried about it. Make sure you know the area and what will attract. Put a budget aside for renter turnover/transition and you should make money.