Can 2/1 SFR make good rentals?

Question

Does anyone have experience with 2/1 SFR as buy and hold rentals? I have some opportunities in my area, but have read these may not be the best. The negatives are supposed to be shorter term renters and harder to find high quality tenants. Thanks, Rob

Loren Clive · Answer

yes, all depends on what you buy it at

Jeff B. · Answer

3/2 makes a difference  to families with children - - imo obvious

Rob Lalumendre · Answer

@Jeff B. @Justin Fox @Toby Mims

Thanks Everyone, I appreciate the info and ideas. My area is only about 30k people, rents range 700-850 mo. I have thought about converting 2/1 with a basement to a 3/1.

Any big difference in 3/1 vs 3/2, I've noticed a big price difference between the two, not sure if it's worth the extra?

Toby M. · Answer

You could really knock it out of the park by bringing along a contractor with you to the 2/1ba home, to see if a small third bedroom can be created with minimal investment.

Jeff B. · Answer

The 2/1 or 3/2 are great for families and I find they stay much longer than singles in 1/1.

Justin Fox · Answer

If you're in a decent area you may attract young professional couples.  One bedroom and an office.  The rent will be much lower so you'll need to make sure you buy right in order to get the CF you desire based on comparable rents.

The rents and tenant pool should be a concern but exit strategy should be your main concern buying a home that would be fairly undesirable to any family with a size >= 3.  That's just my opinion though.