Rental Small Master Bedroom - Is this a major concern?

Question

Hello All,

I am thinking of offering on a 3/2.  The layout is a little odd. The kitchen and living room are large. The garage is good size as well. ( The house is 1250 sq ft) The master bedroom ( which has an attached bathroom) is small. A full size bed would take up most of the room in the master bedroom. It doesn't appear that a queen bed would fit. The other rooms a tad larger, but not much.

a) Do you think think this would turn off a lot of potential tenants?

b) How bad could this affect re-sale?

I am not sure if it is a buyer and sellers market right now..Places are not lasting at all so I have to be quick if I proceed.

Thanks

Brandon Pearsons · Answer

@ Annette I wish I lived in another area for that reason. Its so expensive in Cali :/ Its hard to see a 10% return on cash here.  I live in a small out about 3 hours from Siilcon valley were outside investors pay cash for these SFH and MFHs to rent.. It seems kind of stupid, because there return on case is poor. I dont understand why they do that, but it has ruined many opportunities for people like me, just starting out.

@ Mark

Na, its a sort newer home. ( built in 1996) Just a poor design.  2/3s are a least $100 less a month. The numbers wouldnt work for this one. There are a lot of 2/2s out there but I have been staying away from them. I have always heard go with the 3/2s when investing. There re-sale is better down the road.

@ Bill. I think the house is orginal, but yea it would be nice to shrink the bathroom down. I am imagining adding on to this house would be very costly.

Bill Gulley · Answer

All the single moms I've met have queen size beds, at least a queen size.

Sounds like maybe the bath was added in a larger room? Could that be?

Measure it!

Consider knocking out a wall to another bedroom, a 2/2 with a larger master, sitting area might rent for more, check the market to see the best use of the property. :)

Mark B. · Answer

Is it a 3/2 because it was remodeled that way? If the layout would allow it, does it make sense to knock down wall and make it a 2/2? Consider running the numbers that way and make an offer based on a 2/2 comp.

Annette Hibbler · Answer

If it were me, I'd pass.  Bedrooms, kitchens and baths are a big deal to tenants.  If the bedroom cannot comfortably fit a full size bed, you're going to have trouble renting it and/or going to have to lower your rent to compete with the other units around you.

One last point, if this is the best you can afford in your own backyard, broaden your horizon and look outside of it.  There is a lot of potential out there.  Good luck.

Brandon Pearsons · Answer

@pam All the houses in the the neighborhood are bigger and nicer. This neighborhood was built buy different builders so the houses look a li different from each other

@Richard  I did a quick pace of it. I think it was 8x10.. a Dresser and bed would be crammed. Its a legal bedroom . Its got a closet

@ Steve   I know I wish I could afford better, bigger  houses and rentals.. This is all I can do. With the interest rates going up. The cash flow is getting thin on this one. Do you think it is bad move? Im just starting out.

Thanks

Steve Babiak · Answer

Even the single mothers seem to have queen size beds; I have had tenant prospects say bedrooms were too small for their king and California king beds.

This is the sort of thing that limits your tenant pool, because they usually aren't looking to replace furniture when they move.

Richard C. · Answer

A bedroom needs to be 70 square feet, with no dimension less than 7 feet.  I think it would be pretty obvious looking at a 7x10 room that a queen bed would fit (even if not much else would).  Just how small is this room?

If it is not a legal bedroom, you are looking at a 2/2, not a 3/2, and that obviously will affect resale.

Pam R. · Answer

So another question: are the other houses in the neighborhood the same layout, and they are pulling down that rent?

Brandon Pearsons · Answer

Hi Pam,

Thanks for the reply. This is lower income city. This neighborhood is one of the nicer ones in this city. Its definitely a blue collar city. The price would be toward the upper end of the rent scale. A Similar house in the bad area of town would rent for $850 and  am thinking about asking $1050 a month for this one. The top of the rent scale is around $1100

Pam R. · Answer

Hi Brandon. What does the market in your area demand? And what is the rent level/type of neighborhood? Sure, people always want bigger bedrooms, but depending on the price point, it's not always the decision driver. Although not being able to fit a Queen bed - that's pretty small. That could be a deal-breaker if they can't even fit their bed in the room.