What's easier to Rent out for cashflow? 4Br 3Br or 2Br

[Brian Garlington]

What's easier to find renters for? a 4br or 3 Br or 2Br? 

Some people say 3 Bd/2Ba is the ideal combination. 

Others say you get more cashflow with a 4 bd/2,5 but you run the risk of higher vacancy because most of the time a 4 bd is when people are looking to buy instead of rent. 

Still others say if you can buy a two bedroom for a lower price that has a "bonus room" or "office" that you can convert into a bedroom by adding a closet then that's even better because of forced appreciation.....then rent that out as a 3 bedroom 2 bath.  

What's been your experience?

By the way i live in the San Francisco Bay Area.

[Account Closed]

Originally posted by @Brian Garlington:

What's easier to find renters for? a 4br or 3 Br or 2Br? 

Some people say 3 Bd/2Ba is the ideal combination. 

Others say you get more cashflow with a 4 bd/2,5 but you run the risk of higher vacancy because most of the time a 4 bd is when people are looking to buy instead of rent. 

Still others say if you can buy a two bedroom for a lower price that has a "bonus room" or "office" that you can convert into a bedroom by adding a closet then that's even better because of forced appreciation.....then rent that out as a 3 bedroom 2 bath.  

What's been your experience?

By the way i live in the San Francisco Bay Area.

 Hi Brian, I grew up in the East Bay :-)

As a manager, I'd always rather rent out smaller units.  So, I'd vote for a 2 bedroom.  The reason is the type of tenants and the amount of damage you can expect.

A bigger house will attract large families and sometimes in the Bay Area, that means multi-generations.  That's a lot of wear and tear, and more maintenance calls to deal with, etc.  You'll also possibly have parking issues with neighbors and that kind of thing.  More pets, maybe.

And there is always a market for smaller, cheaper places.  A two bedroom will give you a couple, or a couple with a child, normally.  That will normally be less drama and less maintenance and damage.

Maybe a larger SFH will demand more rent, maybe they have kids in school and would stay for many years, especially if it's in a good school district - I don't know about that. I just know, that personally, based on my experience managing properties, that I'd prefer having smaller rentals. Less tenants = less problems. For what it's worth.