6 plex - All one bedroom one bath

[Jordan Edge]

Hello! There is a 6 plex for sell in my area, but they are all one bed room, one bath. This 6 plex has been fully renovated and is turnkey. Rents for total 5,865 a month. Asking price is 825,000. ROI is 16 percent.

My question is, should i be scared or concerned advertising one bedroom/one bath rentals? Are they harder to rent? Currently they are all rented.

Thanks everyone.

[Allie Dickson]

If I were you I would call a few different property managers in the area and ask what the vacancy rate is for 1b/1b rentals. Do they have any available? Do they have a waiting list of tenants looking for 1b/1b rentals? Also, you could do a search on Rentometer for some good stats that would inform your decision. Hope this helps! :D

[Jordan Edge]

Thanks Allie!

[Bjorn Ahlblad]

@Jordan Edge my 2 beds are easier to rent than the 1 beds. They all rent easily and the 2's are preferred. You might want to run your numbers again, Jordan. All the best!

[Wyatt Franta]

In my opinion, it depends on the work-life demographics and the major employers nearest the property. I've helped numerous friends, and friends of friends get 1/1's near the Irvine Spectrum as they all work there, are young & unmarried, and can afford the rents. I've also helped clients find 2/1's, 3/2's, etc. Those are the families with kids that need the extra space.

Also, what Allie said is very important as well. If there are numerous apartments for lease around your building, find out why and see if you can offer something they don't, or else you might be stuck competing to fill vacancies every year.