Multifamily Unit Mix - 100% Studios

[Matt Kvalheim]

Hello everyone, I’m wondering what you multifamily investors think of efficiency units (studios). I would normally stay away from them due to higher management intensity and probably higher turnover (vacancy) rates, but I happen to be evaluating a building that is 10 studios rented for about $450/month each and I would love to get the perspective of some investors who are more experienced at this than I am.

What do you think? Should I stay away from an investment property comprised of 100% studio units?