Posted by Bert G on May 16, 1999 at 12:25:14:
Three BR houses will have a broader appeal to the end resident. A family that needs a two bedroom home can live in a three bedroom, but a family that needs a 3 BR can’t live in a 2.
CS does mention that if 2br are popular in your area (ie, a lot of retireee’s etc that want smaller houses) the a 2 would be appropriate.
BG
3/2 versus 2/1 for a beginner - Posted by Bill
Posted by Bill on May 16, 1999 at 10:24:56:
CS advises against 2 br houses, but I see a lot more listings that are in my comfort zone for 2 br. Are they hard to unload in a hurry? Are the potential tennants substantially less settled? Do the properties represent a potential disaster that should be avoided?
I’m glad no one told me that years ago. - Posted by hkCA
Posted by hkCA on May 17, 1999 at 14:30:15:
Since 2/1s are less desirable in most cases, there exists a chance for an investor to buy them at a greater percent of discount. So why avoid them? People are buying these houses all the time. They make great starter homes for people with little money but a desire to own their own place. I feel while many investors are only looking for the “ideal home”, they are passing up a lot of good opportunities with these smaller units. Just be sure to buy them at a good discount.
They also make great L/O deals. After the tenant/buyer is in the home for a year or two, they often decide they need a bigger place. You get to L/O the place again and collect another option consideration. And you can sometimes work a deal to move the first buyer into another larger home you may have.
hkCA
Re: 3/2 versus 2/1 for a beginner - Posted by troy
Posted by troy on May 16, 1999 at 22:01:40:
Be sure to check out your marketplace. Also, run the numbers, if the rents will cover mortgage payment and still have a +CF it may be worth it. Good luck
Re: 3/2 versus 2/1 for a beginner - Posted by SCook85
Posted by SCook85 on May 16, 1999 at 20:05:39:
I have done quite a bit of 2 BR homes, and I have rented or sold them all. I will admit that they take a little longer to unload and get less of a response when running an ad but they still move. In Baltimore where we have a lot of rowhomes if you look at a 2BR rowhome you can bet the whole block is 2BR homes. The next thing I do is look up and down the block and see that there are people living in all of those homes. I think about it, and wonder what are all of those people doing living in 2BR’s no one wants them.
To answer your question it is ok to buy 2BR’s. A deal is a deal, they in most cases take a little longer to unload becuase your buyers base is smaller but you can still make money on them.
SCook85