OfflineI am a new investor and am looking for advice from experienced investors. I have the opportunity to purchase a property with 3 units. The main unit is a 2 bedroom house which needs some work. There are also a 1 bedroom house and a duplex that are both one bedroom units. I like the location of the property but i have some concerns about 1 bedroom units. In you guys experience have you had difficulty getting one bedroom units rented out?
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One bedrooms are great for students and elderly who are on a budget. Advertise in Penny Savers or any other free paper, craig's list, or post sign outside the unit. Look at and check around on prices of rentals in the area. Make you place the best looking inside and out. Have a home inspection done before you buy, it will save you so much money. Saying you did not know about this or that, won't save you after the fact. Lease the place with the option to buy, that way they are responible for the little things that drive landlords crazy. (Ensure you have Homeowners Insurance and have a clause that states the place gets sprayed for bugs every 4 months, (just add the price in the rent broken down over 12 months, and never sign a agreement for less than one year. Good luck!
A 1BR gives you little flexibility in terms of paying all utilities and putting some money in your pocket I believe.
Plus, your options are limited on who your tenants can be; either a single person or a couple. The lack of room will at some point be an issue and might make it where you have a problem maintaining steady tenants; a good rental spot keeps tenants at least two years, not one where they start complaining and start looking by the 7th month, counting down the days to leave.
If it makes financial sense, but its a stretch unless you get it for a steal