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Updated over 8 years ago on . Most recent reply
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monthly cash flow on a 1 BR is much better than a 2 BR
Hey there BP - I came across an interesting situation today that i was hoping to bounce off the veterans :) I currently have 2 rentals, and am looking to add another 2 in the next 6 months. I'm looking at a few townhomes that are available, 1 and 2 br's. Because the taxes and maintenance are so much higher on the 2 BR , but the rents are not similarly proportionate, the monthly cash flow per month and cash on cash return is actually much less on the 2 br. The 2br needs some work while the 1 br is ready to be rented. As a result, the 2 br is priced only a few thousand more than the 1 br. Obviously the appreciation would be much greater on the 2 br but if my goals are long term rental income, is there anyone that would say the 1 br is the better route?? I appreciate your replies!