3bd 2 bath house 1200 sqft too small for rental?

Question

I found a 3 bed 2 bath house rental property that seems nice but when I went to tour it, the master bedroom and bathroom are a good dize but the other 2 bedrooms are quite small with one being very small (~8ft by 12ft is my guess). How much of a concern is this in general? Is this just something to factor in by assuming I will not get as much rent for it?

Justin Tahilramani · Answer

Nope - in my opinion 1200 is about as large as you want a 3/2 RENTAL SFR to be. Every market is different, but many of my 3/1.5 and 3/2's are less than 1200 sq ft. I don't have any problems renting them. Just because it feels small to you doesn't mean that it wont meet the needs of someone else. My opinion is that you 99.99% of the time you can't go wrong by offering affordable housing that is clean and safe.

Joseph Cacciapaglia · Answer

In San Antonio, you can go as small as 1,000 SF (and sometimes even less) with a 3/2, and still have decent luck renting it. I would guess this holds true in many TX markets. Just be sure you're pulling similar sized rental comps when you're doing your due diligence.

Ben Blecker · Answer

@Corey Slaughter  I’d buy a neighborhood of houses that size If I could.   If the numbers work go for it

Matt Leber · Answer

@Corey Slaughter nope, I have a ‘no frills’ 4/1 1,134 sq feet that pays ~$1400/month on section 8. The govt section 8 program doesn’t care about the sq footage size, only that it has 4 legitimate bedrooms with closets, windows, doors.

We also have another 3/2 under 1,200 sq feet in the portfolio. Tenants are great and have been with us going on 5 years.

Wyatt Franta · Answer

Hey Corey,

It all depends on the renters. A 3/2 1,200 may be a little on the smaller end here for a family of three. However, for a family of two, it could be the ideal size. Small, "cute", and easy to clean.

Perspectives will vary, but don't shy away from a home based solely on its size alone. Like the old adage goes, "it's not about the size of the boat, it's about the motion of the ocean".

If it's a great home within a great neighborhood with access to local hubs, take the next step and start checking boxes.

Good luck!

Account Closed · Answer

Hey Corey! I see that you are in Greenville, Texas! So am I! My husband and I are currently renting, looking to acquire our first property for a live-in flip / BRRRR. We would love to connect!

Clint G. · Answer

@Corey Slaughter

In my market we assume at least $1 or more per sq ft for rent. It all depends on your purchase price and rent etc as to of its going to be a good purchase or not.

I like to buy my 3/2s over 1300 sq ft simply for resale value.

Too many unknowns right now for us to be able to tell you if it's a good buy or not, but I wouldn't shy away just because it's 1200 sq ft.

Corey Slaughter · Answer

Thanks for all of the help everyone! Sounds like the house size shouldn't be a concern as long as comps confirm rental price and the location suits it. I appreciate the all of the information.

Stone Saathoff · Answer

Not a concern at all. I see rentals fly off the shelves with similar specs to that on a regular basis. As other have mentioned, it may be even easier to rent it out if you're in a more central location to the town of the subject property. I wouldn't worry at all though.

3bd 2 bath house 1200 sqft too small for rental?

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