Updated about 9 years ago on . Most recent reply
California Newbie
Hi everyone,
I am just starting out in multi family investing. What I am finding is, there are a lot of houses out there but not ones that will make me the CAP I want. Does anyone know anything about efficiency units? I am finding a lot of multi family units that have these and I am not sure if they are a good idea or not. Does any one have any advise in that area?
Most Popular Reply
Yes, generally I'd avoid investing in any complexes that are 100% efficiency units or studios. These units will experience higher turnover than 1 bedroom or 2 bedroom units and high turnover will be a big expense. A 100% efficiently building will be run more like a hotel than an apartment complex with stable long-term tenants.
What is more preferred is a complex with approximately tow-thirds 1 bedrooms and one-third efficiency's (studios) and 2 bedrooms.