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Updated over 7 years ago on . Most recent reply

User Stats

48
Posts
6
Votes
Ramon Wilson
  • Investor
  • Los Angeles, CA
6
Votes |
48
Posts

1 bedroom units are much better than 2 bedroom units

Ramon Wilson
  • Investor
  • Los Angeles, CA
Posted
I'm looking to invest in a supply constrained, rent controlled area with good market rent growth (ie, market rent growth significantly exceeds the rent control increase limits). I know in many non-rent controlled (or over-supplied) markets investors typically prefer longer-term tenancies, but that seems like a disadvantage in this situation. Given the rent control rules, the only way to take advantage of the strong market rent growth is to turn units ever year or two. Even factoring in the cost to turn units, it is still better regularly increase rents to market. So, given that, why would it make sense to buy units with more than 1 bedroom in this type of area as studios and 1 bedrooms typically turn much faster than bigger units?

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