How do 2 Bedromm SFH's do in your area? - Posted by jason

Posted by Christen on May 13, 2006 at 15:49:41:

central NY

How do 2 Bedromm SFH’s do in your area? - Posted by jason

Posted by jason on May 12, 2006 at 10:03:07:

Aroudn here, I HEAR they sell much slower than 3 bed. My goal is to rehab/resell a 2bd in my area.

I’m just nervous that it may be to hard to sell quickly.
It’s an 800 sf 2 bd home on a huge city lot.

Can purchase for 10k, 10k in repairs, appraisal will be around 45k

Jason

Re: Great, they go fast - Posted by Dan-fl

Posted by Dan-fl on May 13, 2006 at 08:04:44:

here in fl.I have sold a couple dozen in the last two years.I got top price with multi offers in a few days on the market.

Re: not if you paid me. - Posted by Christen

Posted by Christen on May 12, 2006 at 17:51:14:

That is my opinion in my area on 2 bedrooms. There is virtually no market here for them. In an older, somewhat depressed city like mine it could sit forever. Even an older couple wants a 3d bedroom, there really aren’t any single young professionals here, no condos or townhomes either. If you can’t pass up the deal be prepared to sell creatively. Owner finance then sell the mortgage, carry a second, rent it with a lease option etc.

Re: How do 2 Bedromm SFH’s do in your area? - Posted by Joe

Posted by Joe on May 12, 2006 at 13:06:16:

Jason, that sounds like a possible deal for a rental. Say you purchase for $10k, add in $10k in repairs, add in another $10k for closing costs, taxes throughout the year, other repairs throughout the year, and as a buffer. You’re in it for $30k.

Say you finance the whole $30k at 8% for 15 years, that’s less than $300 per month. Can you rent it for $500 per month? That would be $200 per month cash flow. AND you already have the extra $10k built in that could account for unforseen repairs.

That would be $6k gross rent per year, which is 20% of the cost of the deal. Your cash on cash return would be 8%, giving you $2400 per year cash flow.

You just have to be sure about the market rents in the area. And that your repairs are estimated properly.

Re: How do 2 Bedromm SFH’s do in your area? - Posted by Anne_ND

Posted by Anne_ND on May 12, 2006 at 12:02:43:

Jason,

If you have a large semi-transient population then it will sell/rent better than if not. By semi-transient I mean college students, young professionals, retirees or other people who don’t have children. I’ve had good luck renting out 2 bedrooms because I allow pets. The other issue is that often a two-bedroom will have an obsolete floor plan (only one bath) which also makes the place undesireable.

So consider your buyer’s end users and decide based on that.

Anne

Re: not if you paid me. - Posted by jason

Posted by jason on May 13, 2006 at 13:23:08:

Where are you located?

Re: How do 2 Bedromm SFH’s do in your area? - Posted by jason

Posted by jason on May 13, 2006 at 13:26:04:

I KNOW I can get in and out for $25k. Rents might be around 475. taxes + insurance 120/month.

300 expenses, 475 rent.

I just dont know how well they rent!!!

The house itself WILL be the nicest on the block, so it should be easy to rent. Plus its se back a good 120 feet, as opposed to the normal 20 ft. That adds a nice effect

Re: How do 2 Bedromm SFH’s do in your area? - Posted by jason

Posted by jason on May 12, 2006 at 12:23:20:

Yes, the area would be most likely inhabited by the transient type. But that may be my stereotypical label that has no merit?

What kind of people do you think live 1 mile from the hood? Seems to be many older folks that have been there since WW1, but just down the street are the transient types that are transient because thye dont pay the rent!

I guess it WOULD be ideal for a single retiree, or single mom with one kid.

For the price, I hate to pass it up, but no exit = no money.