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Updated over 4 years ago,
Finding tenants to pay for 3+ bedroom unit vs 2: how much harder?
Right now I am interested in purchasing my first duplex or triplex and lately, I have been doing a bunch of analysis.
Obviously 6+ bedroom duplexes are much more desirable to me than 4 bedrooms because you can rent them out for more. However, although having 3,4, or even 5 bedrooms per unit makes these properties look great cashflow-wise when I am doing my analysis, I want to know how practical it is to actually find tenants that are in need of say a four-bedroom unit.
I can imagine that the tenant pool in need of 2 bedroom units is much larger than the tenant pool in need of 4+ bedroom units. That being said, I am concerned that if I purchased a duplex with 4 bedrooms per unit it would take a looooong time before I could find tenants that would be willing to pay for what a 4+ bedroom should theoretically rent for in my area. Of course, covid only makes me more concerned that I wont be able to find tenants at all.