Flipper/Rehabber · NY · Member since 2019 · 3 posts · 1 vote
I'm looking to purchase a 6 bed 3 bath 3700 sqft home. It needs a bit of remodeling and I intend on making it a rental. I'm wondering if I should keep it as a SFR or turn it into a duplex. Which direction would appraise for more and which would rent for more. And lastly if a duplex, how should I divide?
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
6y
It's impossible to give meaningful guidance without knowing more. That written...
It will probably be difficult to rent a 6BR house for much more than a 4BR house since your applicant pool needing that much space is very small. You could find someone that needs 6BR, but you could end up waiting a while too.
You have some base amount of remodeling in mind. You will need to figure out what you need to add to that to get a duplex. Ideally, you should create 2 independent properties if possible, such as a side-by-side twin with separate utilities. That would allow you to sell one off if you wanted to. Over/under duplexes can be sold as well, but they have a common roof and maybe more that needs to be addressed. Build the end result into your model renting 2 3BR properties versus 1 6BR property and see what the numbers tell you.