I’m a new investor in the Kansas City market. I am interested in homes with 3 bedrooms and 2 bath, but I have recently come across a thread on the forum where some folks were discussing the benefits of smaller 2 bedroom 1 bath properties. I was curious to dig deeper in to this topic, and hopefully get some feedback from investors in the KC market or similar markets.
I prefer at least 3 bedrooms especially if I plan on selling them in the near future. 2 bedrooms at least in my market sit on the market much longer. More families seem to want 3 bedrooms. The 2 bedrooms in college towns seem to rent just fine. But on the other hand a 2 bedroom will be a little cheaper in price, but you might attract those that can't afford a 3 bedroom.
@Dean Pinhas The benefits for a 2 bed is the cost to upkeep is much less also the tenants you'll attract will either be single people, new couples, and elderly. The only downside is rent is much less than 3 bed. It's just up to what strategy you want and purchase price. If it hits your numbers then do it. Always good to have a variety.
@Dean Pinhas in general, you'll have a larger tenant pool with 3 bedrooms but don't rule out 2 bedrooms in areas that appeal to single people and young couples with no children. 2 bedrooms can do very well in areas like arts and entertainment districts and near college campuses. The returns on these can be good due to the lower price points.