What do you guys think of 2-bd units

Question

What do you seasoned LLs think about 2-bd units (not stand-alone but part of 2-unit buildings - i.e. two 2/1 units in a building. All of the immediate area are building like this - 4-plexes with 2 units on each side, 2 owners). 
Initially, I thought that 2-bd has lesser demand than 3-bd. But on the other hand, not everyone has families of 4 or more. Some people require 2- or even 1-bd places.
I also think they might be harder to sell.
Any thoughts on it?
I'd be with them for looong-run.

Joel Owens · Answer

Personally I wouldn't do it.

I want to control the area I am investing in to preserve values as much as possible.

I have seen many landlords and the range of how each works is mind boggling.Some are slum lords and know it,some do an okay job but think they are the best thing since sliced bread,and then a few actually keep up their properties really well.

I would buy the whole building or no dice.The 2 unit you are looking to buy you could contact the landlord next door and see if they want to sell.

Uwe K. · Answer

In that case: stay away from 2 BR units  :D 
Like others said, buy the whole building or nothing. Headaches down the road are pre-programmed otherwise.
Even if it some sort of condo situation, a condo assoc. with 2 owners will probably always end up in a deadlock.

Mark Updegraff · Answer

I agree with Uwe.  IMO Tenants are smart enough to compare total square feet.  So, small double or large single... doesn't too much matter.  More a matter of layout, and total sq footage.  Lots of people try to "Up Advertise" their units in terms of size and renovations.  A showing is great for the tenant, as well as the property manager :D  At the end of the day it is Rental Rate + Sq Footage + layout + features + included utilities that weigh in on tenant apartment psychology, no matter what you call it.

Uwe K. · Answer

Why do you guys all imply that he's looking to buy one unit ina  building? Did I miss something, between the lines, maybe?  :D  Must be my screen resolution...

Anyway, 2 BR units I think are worthwile the investment. Single people not part if the lowest income range often like the space and flexibility of 2 BRs, or just two people without the apparently government-mandated minimum number of 3-4 kids for SSI receivers.

Mark Updegraff · Answer

if it is a 4 - 6 plex, I wouldn't NOT buy it just because I didn't own the whole thing.  I've purchased 2 separate units in a 6 unit row (next to each other).  And if any more come on the market in a price that works for me, I would snap them up too.  Our rentals are nicer than the typical unit at our price.  We strive for affordable while increasing aesthetics and it gets our units rented quick.

Casey S. · Answer

Im not sure if you are saying you will be splitting the building or not. One of my rules is never buy anything that you dont own the entire building.

Concerning two bedrooms, I love them for rentals. I rent to a lot of college students and find that the two bedrooms result in much less drama. Less people on the lease and less potential for issues to arise. I put a two person max on my two bedroom student rentals and that keeps the lower income families out of them. A number of them have one person living there.

My situation may be a little different and a lot of people will say they dont like them.

George P. · Answer

I'm interested in one half of the building which contains of two 2-bd units

What do you guys think of 2-bd units

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