Rental homes w/single bathroom?

Question

Do single family three bedroom homes with one bathroom limit opportunities?  We are being told to focus on 1.5-2 bathroom homes because single bathroom homes limit our tenant pool. The best deals in our area seem to be one bath homes. We really appreciate your thoughts and input.

Steven McLarty · Answer

Great feedback folks and thank you so very much.  Right now we are relying on the numbers for the decision.  The market we are working is a mix of both 3/2, 3/1.5 and 3/1.  They seem to be selling equally as the market is really getting tight.  Good deals are tough to find as you know but we are not going to jump on bad numbers.

Justin Kane · Answer

if every house in the neighborhood sells as 3/2 then yes

Nathan Gesner · Answer

As others have pointed out, it depends on your market, condition, price point, and other factors. In my market, a 1/1, 2/1, and even 3/1 will do well. A 3/2 or 4/2 has more appeal but it also stretches into the price point where fewer people are able to afford so it's a wash.

Derek Guivehchi · Answer

@Steven McLarty  you’ll have to learn the market demand. For my market a 3/2 is always preferred and have a line of people wanting to move in. 3/1 isn’t as strong but rent just as well in my market. I see pricing 10-15% higher on a 3/2 in comparable neighborhoods for this market.

Rachel H. · Answer

@Steven McLarty It will depend on your market. Check to see what's selling in the neighborhoods you're interested in buying in and how long homes are staying on the market. If people are buying homes with one bathrooms, you'll know there's a market for it. You may want to talk to a few property managers and real estate agents who specialize in the neighborhoods you want to buy. Good luck!

Mike McCarthy · Answer

Have you considered buying a 2/1 and adding a half or full bath somewhere?  Not only are you increasing your rental price, but you're likely adding significant value to the property as well.

Kenneth Garrett · Answer

@Steven McLarty

I have a number of single family homes with one bathroom.  I have no problem renting them out.  Usually takes less than 2 weeks to secure a tenant.  If your rental market is predominately 3/2 then that should be a consideration when investing.

In my market it does not make that big of a difference, but where my properties have 2 bathrooms it is an amenity people will choose over 1 bathroom.

Good Luck.

Karl B. · Answer

To some degree. All my properties are multi-family and all are 1-bathroom. I'm sure people would prefer there be multiple bathrooms but if you can find a deal that has one bathroom go for it.

I think it depends on your rental pool as well. If you're renting to a family they'll be less picky about 1 bathroom. If you're renting to young professionals (such as friends who want to rent a place together) they'll be more likely to want their own bathroom.