Thoughts on buying 2/1 and 3/1 Single Family Homes

[Joe M.]

How are you guys approaching the 2BR/1BA and 3BR/1BA single family homes.

In my area I'm seeing some real value buys for these particular homes, especially for a buy/hold investor like me.

I know generally most folks would like to buy 3/2 and I'm no exception. However I'm seeing some opportunity with these particular homes, perhaps because investors traditionally shy away from them?

A good example is a house I'm considering bidding on today. It's a 3/1 brick bungalow in a nice working class neighborhood. I could own this house for around 12K and it needs about 8K in rehab. ARV is around 50K and will rent for $650/mo.

To me it seems like a no brainer, but maybe I'm missing something?

[Paul B.]

My take is, if the numbers work (and if they're correct), the numbers work.

A house that rents for $650 where you're all in for $20,000 sounds like a no-brainer to me, too, unless it's in a war zone.

If there's a rental market for your X/1 properties, go for it, especially if you have no plans to retail the property.

Look on the bright side: one less bathroom to take care of!