What's the Best Size for my 1st House? (That I'll rent in future)

[Cory Tollefson]

First Forum Post! I'm Moving to Phoenix at the beginning of the year for work and am planning on buying my 1st house. I'll live in the property for the forseeable future (2+ years), but will probably move at some point after. I will want to rent the home after that. I may even look to move into a different home and rent this one sooner, who knows?

My question is: How should I approach the size of this house? If I were buying purely for my spouse and I's needs, it would be 2 BR; 1 to use as an office of for guests. That being said, I've been advised that 3 BRs typically make better rentals. I can understand why, but I'm generally conservative and it's tough getting over buying more space than I currently have use for. If I'm thinking long term and have the appropriate funds for either, should I do 3 BR? Or start with 2 and move up in the future? Other thoughts?

Thank You!

[Ryan Swan]

@Cory Tollefson the property that will appeal to the widest spectrum of future tenants is going to be a 3 bedroom, 2 bath home, with a minimum of around 1,400+ interior square footage. Tenants may not have as much real estate experience as actual buyers or investors, but they still look for many of the same things buyers do such as good location, proximity to freeways, proximity to shopping/amenities, and school ratings. A 2-car garage and ample back yard space might also be must haves for tenants with kids. 

Some attributes I try to avoid with my SFH rentals:

- HOAs. They're not a deal breaker if the monthly dues are low enough (<$60/month), but all things considered I generally avoid them. 

- Pools. Some tenants will be looking for a house with a pool, but many do not. I'd avoid the long term cost and liability and just buy a house without a pool.