Re: Question for all you landlorders - Posted by Frank Chin
Posted by Frank Chin on February 15, 2002 at 06:56:03:
Landlording is like any other business. You got to have a product that sells quickly and everyone would one to pay good money for.
With that in mind:
1- One BR, and 2BR’s are OK. There’s more turnover in one BR’s, if you rent them to the young single crowd.
I now rent 1BR’s to folks over forty. The last guy of 53 was there for 7 years till he retired, and an older women of 50 stayed for 5 years, also till she retired. Prior to that, I had a young lady of 23 staying 4 months. Live and learn.
2- In my area, there’s a great demand for 2BR’s. Reason is many more different types of people want them. They range from older single divorced people with money who can’t stand to live in a studio or 1BR, to 2 or 3 singles sharing, to a family of four (or more) who can no longer afford renting a SFH.
3- Here in NYC, they call walking through one room to another a railroad layout, and they’re a lot harder to rent. I usually see low income immigrants not able to speak English renting these.
If you can get the property and a GOOD price, I would try to convert it to a HUGE one BR, with a dressing room. In my experience, HUGE rooms, and HUGE closets sell. Its making lemonade out of lemons.
Try to build a hallway between going across the first bedroom to the second. If the remaining space in the first BR is small, call it a closet. If its large, call it a BR.
4- Then, you can keep looking. Why put so much work in if there’s plently of others with no work. That is ,unless you get it for a good price.
5- Sometimes, you can convert functionally obsolete layouts to modern ones for a modest cost. Many years ago, I looked at 3 families (with 2BR each) when they were going for 200K to 225K. I found some built in the late 1930’s going for 180 to 190K with no dining room. Finally ran across one asking 160K (got it for a little over 150K)
Modern layouts have a separate dining area. The old layouts have an eat in kitchen. So all I did was take down the wall between the eat-in kitchen area, and the living room, and voila, I have a dining room. It cost me less than 5K to convert each of 2 apartments. The big expense was moving a steam pipe, radiators and re-routing electrical cable.
For about 10K, I have a layout similar to the 200K properties. This was 20 years ago and these properties now sell for 450K to 500K here.