Bronx multifamily-1st floor is currently set up as 2 bedrooms with no living room. Should i make one of the bedrooms into a living room space and make apartment a one bedroom instead? (Bedrooms share the same wall)
I am concerned about possible high turnover and the quality of tenant i may attract if i have an apartment with no living room. Also I’m Just not sure if 2 bed is more desirable and can command as great or greater than a one bed with living room area
Any thoughts ?
I'd look at the rents of 2 BR vs. 1 BR in the area (in my experience in other parts of the country, the number of BR drives rents much more than the existence - or not - of other rooms), and run your numbers, perhaps allowing for more vacancy in the 2 BR scenario.
You could also advertise as you have in your heading here (2 BR or 1 BR+living room). That may bring in a greater variety of prospects.
Priced right anything will rent
@Allana Alex - It depends on what your target tenant is. If you want two tenants who just need a place to cook their food and rest their heads, the 2-bed sounds perfect. The less time they are hanging out in your property, the less likely they will have tons of people over and it will get destroyed.
If you are looking for either just one person (or a couple) who will likely spend a lot of time in the place, a one bedroom might be more beneficial.
From a pricing standpoint, I would think that a 2-bedroom would warrant higher rents because you could rent it by the room rather than as a full unit by itself.
Where I am the difference between a renovated 1 bedroom with living space and a renovated 2 bedroom without would be negligible. If all things were equal and they both had a living space I would see a difference of $200-300.
In practice I can rent a 1 bedroom much faster, they are much more in demand. And having converted one, small 2 bedroom to a more spacious 1 bedroom- I have no regrets and I think it was the best move for me.
I am not certain what your market would be like.
It depends on the demands of your market. If this were a college town, you may have a good market for two separate tenants, each with a private bedroom and shared kitchen/bath. In my market, that wouldn't fly so I would convert it to a one-bedroom unit with a living room.
Thank you everyone for your input. I am househacking so i think I will go with the 1 bed with living room. Thinking i can get a better quality and more long term tenant. Even if i lose $200 in rental income a month by so doing, I’m thinking that peace of mind is worth it.
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