2 Bedroom Phobia - Posted by stan

Posted by stan on October 06, 2004 at 11:09:21:

So in essense you are saying that most properties will move at the right price/terms – I boils down to how well/low I can buy/control.

Thanks very much for the feedback.

2 Bedroom Phobia - Posted by stan

Posted by stan on October 05, 2004 at 01:30:26:

All,

My marketing, as of late, is turning up all of these 2 bedroom houses and condos. Kris Kirshner, in house buy course recommended that an investor stay away from 2 BR, at least at first. Is this sound advise? My thoughts, prior to this posting, were that I would only deal with 2 BR in hot rental market like near the university, but otherwise I would pass.

Thanks in advance for your sage advice.

Times have changed. - Posted by GL(ON)

Posted by GL(ON) on October 09, 2004 at 16:12:58:

Since the first real estate courses came out in the early 80s they have been based on the typical 3 bedroom 2 bath suburban house. Most gurus recommend that you buy nothing else.

Times have changed. We no longer have the majority of people in traditional mom and pop, sis and buddy families. There are more and more older retired people especially in the South and Southwest areas, and more young single people with good jobs and stable incomes who prefer to stay single into their late 20s and 30s.

In many areas there is a good market for 2 brms as rentals and as sales. Of course they dont go for as much money as larger homes but you have to look at it in terms of what you get out in return for what you put in.

Research your local market and see how popular the smaller homes are,as rentals and as sales. Then make your plans accordingly.

You could also consider adding a bedroom to an existing house if it was cheap enough.

Re: 2 Bedroom Phobia - Posted by rm

Posted by rm on October 07, 2004 at 13:03:33:

Are other 2 B’s in your market selling?

Probably.

Do your research, and proceed accordingly.

Re: 2 Bedroom Phobia - Posted by Mark (SDCA)

Posted by Mark (SDCA) on October 07, 2004 at 12:07:47:

2BD compete VERY poorly with 3BD houses- as rentals and especially as sales.

However… they compete very WELL with 2 bedroom apartments- as rentals.

I would only buy these if you are planning on holding for the LONG term.

Mark

Re: 2 Bedroom Phobia - Posted by Rocco

Posted by Rocco on October 06, 2004 at 08:40:42:

In my area, renters do not necessarily want a three bedroom. A 2/1 seems to be what the market wants. I had to rent out a nice 3/1 in a good area at a 2/1 rental rate because the market would not respond to a higher rental rate.

Without a doubt… - Posted by MatthewC

Posted by MatthewC on October 05, 2004 at 19:29:45:

…3-BR are the safest because it is highest in demand.

Having said that, we have a few 2-BR which are cash flows well. We dont believe they will ever cash out but they are easy to get into and they cash flow well.

MatthewC

Re: 2 Bedroom Phobia - Posted by Sean

Posted by Sean on October 05, 2004 at 13:44:27:

Market dictates need…

In my market a 2 bedroom is far far far less desirable in a property than a 3 bedroom or more. You can still sell and/or rent 2 bedroom homes, just expect them to sit longer and bring in less money per square foot.

2 Bedrooms still move, just slower on average and for less $$.

Re: 2 Bedroom Phobia - Posted by RichV(FL)

Posted by RichV(FL) on October 05, 2004 at 09:34:41:

Stan,

Dave is correct as it does depend on the market you are in.

In Florida condos are hot so you can buy and sell them or rent them out with success.

I also know many 2/1 duplex owners that have done well with keeping places rented.

Rather than looking for a certian type of property, start looking for deals.

Great Success,

RichV(FL)

Re: 2 Bedroom Phobia - Posted by Dave T

Posted by Dave T on October 05, 2004 at 09:08:23:

Depends upon your market. I have been profitably renting 2/1 condos for many years.

Re: Without a doubt… - Posted by stan

Posted by stan on October 06, 2004 at 11:03:57:

When you are saying that they cash flow well, are you talking about using them as straight rentals or LO’s. If I plan to control these 2BR properties with a LO or via Sub2, I would assume then that the payment has to be in line with the market rental rates for that area, otherwise I’ve got a problem. Is that correct?

Re: 2 Bedroom Phobia - Posted by stan

Posted by stan on October 06, 2004 at 11:05:05:

Thanks for the input.

Re: 2 Bedroom Phobia - Posted by stan

Posted by stan on October 05, 2004 at 09:56:31:

Rick,

Thanks for your feedback. When you say ‘start looking for deals’, are you saying that anything moves at the right price (depending on the market)? I just don’t want to get stuck making payments on a property that I can’t LO or REC. Does it come down to payments? What I mean is if the payment is low enough, someone will be interested in either Renting, LO, REC? Is payment the bottom line?

Re: 2 Bedroom Phobia - Posted by stan

Posted by stan on October 05, 2004 at 09:57:34:

Thanks for your feedback.

Re: 2 Bedroom Phobia - Posted by RichV(FL)

Posted by RichV(FL) on October 06, 2004 at 07:45:47:

Stan,

I used to house hunt and look for the “3/2 sfh” and to this day own plenty of them.

Now I look for motivated sellers. As long as I can buy it under value, rent it or sell it a bit under value its a winning situation for me.

In my market I can sell or rent to older people that are looking for smaller places either for a seasonal home or annual. Thats why Florida is loaded with 2/2 and 2/1 and condos and sfh’s.

My long term properties are 3/2’s though. But I never rule out buying smaller properties for the right price.

Great Success,

RichV(FL)