Hello, everyone! I came across a wholesale deal for a 3 bed 1 bath 1100sf semi-detached SFR. It's two stories with all three bedrooms on the second story. The entrance door and staircase to the second story are both in the living room. The only bathroom is located behind the kitchen which is behind the dining room which is behind the living room, so tenants would have to cross the entire house if they needed to use the bathroom starting from any bedroom. Doing major rehab/conversion work to the house would not make the numbers work for this deal (if they did, I'd extend the second floor to fit a bathroom). Does anyone have experience with renting such a layout? If so, how has this impacted your ability to rent at your local market rate? Also, how much longer has it taken to rent out such a layout compared to layouts where the bath were on the second floor with the bedrooms?
There is no way to say how it will affect your rental but it will probably take longer to rent it out. It will also not get the rental rate that you may want. The market is the market.
I had a property with a weird layout and it took 2 months to rent out the units instead of 2 weeks.
Thanks for sharing. You're right, it'll be tough to estimate exactly what the impact would be here in that neighborhood of NJ, but it's nice to hear what happened with other rentals. Did you also lower your asking rent vs the initial amount during that two month period? If so, how much did it change?
I always avoid weird layouts for potential purchases, as the additional time and reduced rent makes the deal not so good if you are realistic about your projections prior to purchase.
There are plenty of other properties out there that will give you better returns. Bide your time and be disciplined with your numbers. You'll be glad you did.
Gotta get these weird layouts at an absolute steal. I sold one last year. 4 bedrooms, but only 1 on the main floor. Others were up or down steep stairs. Tenants didn't seem to mind too much, but when I went to sell? Young couples and young families were all turned off. And this was upper starter home price. Try selling a starter home that the entire generation of millenials hates.
I have others with funky layouts, like no counter space between the stove and fridge. The deck was built around the a/c, 3 exterior doors but not really a 'front' door, only 1 bathroom, no garage, oddly shaped lot, etc. I bought them because they were on the cheap and renters don't care as much, but resale will suffer at exit.
Better be at an extremely good buy price or move on! None of mine had room for a wholesaler in the middle.
Interesting, how much of a discount from ARV would you consider an awkward layout deal to be a steal? Or is there another way to calculate it?
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