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Updated almost 9 years ago,
5 units - 4 studios and a 3bed/2bath -- is this a bad unit mix?
Anyone out there having problems with a similar unit mix - studios or 3+2's?
We are looking at a property to purchase with this unit mix, and we are concerned more about renting the 3+2 as opposed to the studios when a vacancy comes up...I rent studios all of the time in the property management company I work for, but we only have three 3-beds in one of our buildings, but it's a large building and a 3-bed vacancy won't eat up much of the vacancy rate.
With the 3/2 being 1 of 5 units, and the rent accounting for at least 1/3 to 40% of the overall rent, this is a concern. Is this a riskier asset? The 3/2 does make me think this is riskier overall.
Any seasoned advice would come greatly appreciated.