Two bedroom, small yard, good area?

[Wendy Black]

I've come across a home that I wouldn't normally touch, but it's in a very good HOA community with a man-made lake, park, and excellent schools. I don't even want to run the numbers until I make up my mind whether it's worth even considering because it's a 2/2 of only 1068 sq. ft. on a small lot (4225 sq. ft.) It can't be made into a 3/2. Furthermore, not only is the next door neighbor very close to the second bedroom window (bushes could help), but also the backyard is tiny. However, it's in the Phoenix area, and the backyard is totally shaded. It would require cosmetic changes.

The only 2/2 we have as a rental is a condo in OC. It took a month to rent, but it's in an HOA with a pool, a man-made lake with a beach, a golf course, and top-notch schools. Our other properties are at least 3/2s.

Our PM from a nearby house (3/2 on a lake for $1150) said that in the past 120 days, only one 2/2 in that area had rented, and it was for only $950 and was on a lake.  

Would you consider this 2/2 under any circumstances?

Thanks.

[Russell Brazil]

I would consider a 2/2 if the price was right. I would comp the rents though against 2/2 condos, as that is a better indicator of what someone is willing to pay in rent on a 2/2.  There are so few 2/2 sfh's that a comp against one of those could give you a false impression of the rent.