Apartment 1 BR?

Question

I was giving info on a multi-unit apartment yesterday that I'm hoping the price is flexible.  My concern is that all of the units are 1 bedroom.  Is this a valid concern?  Or in multi-units is this normal?

Gino Barbaro · Answer

@Jeremy Paschedag

go onto www.rentomter.com to get an idea of market rates.  Also google any complexes or apartments near this one and see what their rates are.

Gino

Micki M. · Answer

Depends on your local market and your target renter. Do a little research on rental sites or with property managers in your area and see what pricing and demand is for 1beds compared to larger units.

Jeremy Paschedag · Answer

Thank you Account Closed

My preference would be 2 beds, but this came across and wanted to check before dismissing it.

Lynne Hart · Answer

@Jeremy Paschedag  Hey Jeremy!!  It depends where the building is. I'm here in St. Louis and would be happy to help you evaluate.  I have a variety of units, one of which is a multifamily with 1 bedrooms.  They rent so fast I have multiple applications and select tenants that are responsible and almost always pay on time as well as keep the apartment very clean - but its about the location.  Give me a call or a PM I'd be happy to discuss in depth as well as look at the specific property for you.

Dominic Lucarelli · Answer

Rent-O-meter is good, but I like to find my own info. Place a generic test ad on Craigslist for your target price. No address, just a vivid description of your intended purchase. You can combine data from Rentometer to give you a good starting point. If Rentometer says average rents for similar units are $500, price your test ad at $550. If you get tons of responses, you've got a great price. If you get a few, it's average. Low response, too high a price. You want to be the nicest units in that market at that price to draw the best tenants.

Good luck, and keep us posted!

Jeremy Paschedag · Answer

@Gino Barbaro Thank you!  I LOVE that link!  My new favorite toy!

Jeff Valentino · Answer

To me it's a very valid concern. Another thing to consider is quality if tenant vs bigger units. Typically people will stay longer in 2+ br units vs 1br and tend to be better tenants. This could be market dependent but is a pretty good rule of thumb IMO.

What type of area is it in etc? Do you network with any local investors you can ask about turnover etc?

Good luck!

Jeremy Paschedag · Answer

@Sterling White and @Gino Barbaro thanks.  These are good questions for which I do not know the answer, and I'm not sure how to get it.

To search zillow and see all of the 1 bed apartments.  But how to I research turnover?

There are 9 units, all rented.  Some have leases renewed this year already.  How do I find market rate or if they are under rented?  Under rented being below market rate/rental rate comps?

Gino Barbaro · Answer

@Jeremy Paschedag

How many units? Are they under rented or at market rate?

Gino

Sterling White · Answer

As stated above @Jeremy Paschedag doing market research will give you a better feel. If there are quite a bit of 1 bed apartments in your area that are experiencing high turnover or longer DOM then that would be a concern.

Apartment 1 BR?

Most Popular Reply