Small 2BR SFR on a Half Lot, No Garge

5 Replies

Hello,

I am looking at an investment property that is a 2 story house. 2 bed, 1 bath. Small house, 860 square feet. Lot size is 3,484 sq feet (half lot). No garage, but ample street parking. Do any of these features so far sound like it would be difficult to rent out? The bedrooms are good sizes, 13x12 and 12x12. The only thing it is missing is an official dining room. Tenants would have to dine in the kitchen or living room.

It is in a moderate to low crime area, slightly lower income neighborhood. Very close to downtown. Walk score of 32, bike score of 51 (never sure how accurate those are). The home is very close to a park and fairly close to freeway access.

The house itself is move-in ready, new wash and dryer, kitchen could use some updating.

I could add a shed in the back yard as a compromise to missing a garage. I know people need storage.

Expenses (mortgage, insurance, taxes, lawn, snow) are ~$430

Rent could be $900 to $1000 (I may include utilities, which would bring up the expenses)

This would be my second time purchasing an investment property, any input is appreciated.

Thank you!

@Justin Tahilramani - I have given that a little bit of though, yes. My thoughts are usually stopped by the idea of providing furniture for an entire house. That is quite a bit of an investment of time and money. You're right though, it might be a good move if it pays off in the end. Short Term Rentals do usually require furnishings, correct?

Thanks!

@Erik D. - Yes, they basically require that you provide everything. Its much less "passive" than a typical rental, but the pros FAR outweigh the cons IMHO - especially if the unit isn't too far from your primary residence. 

Its not uncommon for me to rent one of my units for 3-6 months at a time. I get paid upfront and don't have to worry about financially qualifying the tenant, not getting rent, evictions, etc. Many of out guests are nurses or military contract employees.

@Justin Tahilramani - That does sound like a great idea. This home I am considering is about 15 to 20 minutes away from my residence.

Do you market on AirBnB/VRBO or somewhere else? What percentage higher than normal rent are you charging since it is furnished at short term? Do you hire someone to take care of cleaning in between renters then?

@Erik D. - My STRs are in a military community - far from a "downtown" or a tourist destination. Our units are pretty nice (basically new construction) - one is about 650 sq ft and the other is about 850 sq ft. As regular rentals they would probably bring in $600-$700/month. As STRs they bring in $1200 and $1500/month respectively. We do hire a local cleaning lady to take care of the cleaning between renters.