Multifamily properties with only 1/1 units - are they useless?
In my area, I've noticed a lot of multifamily properties with 4 to 12 units, and all units are 1/1. In my opinion, and correct me if I'm wrong, 1/1 units are useless. Who rents a 1 bedroom, 1 bath? College students, and people who needs a place for a few months - a year max...or worse yet, an family that's trying to save money and cramming everyone into 1 bedroom.
In any scenario, 1/1 renters don't stay long, and the turnover rate is high. As a buy and hold investor, I try to keep turnover to a minimum - I don't want a job as leasing consultant - it's much easier to just go apply for a W2 leasing consultant job at the nearest apartment complex than it is to buy $100k+ properties so I can make this job for me.
I would imagine multifamily properties with 3beds, 1bath+ are ideal - they attract stable and long term tenants.
So why would anyone buy/build an apartment building with 8 units, all 1/1?!
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Most of mine are 1/1 and they are always filled with single people that work and are hardly ever home. No kids, no noise, no problem. Average stay is 2.5 years and the units look just like it did when they moved in (as opposed to my 3/2 where the kids bounced off the walls. I'll take them all day long.