two bedroom houses more difficult to rent?

Question

Are two bedrooms more difficult to rent, vs a three bedroom house?

I have heard they are more difficult to sell.

Anyway,

I have been looking for small starter homes under 120,000-150,000 in the Puget sound. They almost do not exist. What is the typical contractor rehab cost "cost per square foot" for homes in the Tacoma to Kent valley corridor? What about avoiding homes under x amount fo square footage?

Tatiana Gershanovich · Answer

It's all about the price. I don't see any issues renting it. Selling will be harder, but again, it will all depend on the price you will want to sell it at.Rehab cost will depend on how much is needed to be done to the property. If it's just cosmetic, like paint/carpet then it will be around $30 per sq ft, more complex rehab will have about $45-$50 price per sq ft, gut out will be around $70-$75 per sq ft. It might be cheaper, depending on the finishes and quality of work you want to do.

Catherine German · Answer

I think you can find a 2-3 bedroom in the Tacoma area in your price range as Isaac said. If the house has a garage, that is a big plus. They are not hard to rent here as there is so little vacancy. Affordable housing (under $1500/mo. goes fast). Some of the turnkey houses which have been flipped are really overpriced, in my opinion, especially if they don't have a garage. Best bet is to get a fixer. With all the rain here, people want a garage. You do not need to put in all new everything, keep the 20's charm or the vintage feel and only replace what genuinely needs replacing. A coat of paint does wonders. Clean housing (pest and rodent free) is always in demand around these parts. Don't waste money on Stainless appliances (they scratch and dent).

Aaron Mazzrillo · Answer

I love 2 bedroom houses. I have one in escrow now that I'm keeping. Find one in a B+ to A neighborhood and you'll have the perfect rental. No big families with mobs of kids tearing up the place. The ones I own appeal to and are most often rented by single guys or divorced middle aged women with a live adult kid, typically a daughter. Both tend to both stay long term. Selling is easy as well if you buy in the right neighborhood.

Jackson Long · Answer

Two years ago we bought six two-bedroom houses in Tacoma. I do not have trouble renting them except in the winter- and then its hard with the three-bedrooms as well. Sadly the prices have jumped (well, sad for new buyers- I am stoked about it) so its tough to find one where the numbers work.

Brian Pleshek · Answer

It probably depends on where in the country you are. I would imagine that in big cities they might be more in demand because of young professional wanting to live close to work. But where I am they are low in demand and so they are harder to sell and rent. It is not impossible though. But I have certain rules for buying my rentals and one of them is a minimum of 3/1. Just FYI, I also require a 2-car garage, central air, and built after 1965. Just my personal preference, but I believe that properties that have all those characteristics will be easier to rent out.Brian

Timothy Tooker · Answer

@Lorin K.I would stay away from 2/1 that are more than 100k, unless you are buying turn key in better neighborhoods of Pierce county.

Ruth Bayang · Answer

@Tatiana Gershanovich (see post above)

Lorin K. · Answer

Tatiana, So the complex rehab would be ...full kitchen and bath rehab?, carpet, paint and fixtures thought the house? I have heard in one of your meetings, its hard to get a contractor to come in and make a estimate.So three levels of repairs or rehabFirst level - carpet, paint, inside doors perhaps some kitchen fixturesSecond level - All the above including full kitchen/bathroom tear out remodelThird level- all the above including moving walls, removing lath and plaster , plumbing or electrical or both? Foundation could be included but that is a house I would generally avoid. I want to stick with level one or two for my first homes. Get them cleaned up and minimal rehabed and rented right away. Ohh..Does anyone have a inspection checklist?

Ike Hobbs · Answer

They can be in less demand then a 3 bedroom house here in the Pierce County area, but if you can acquire them for less then it evens out. There are defenitely opportunites to buy them here in the Tacoma area in good condition for under 150 and in poor/rehab condition for under the 120k.

Caleb Friberg · Answer

I agree with Aaron in that if you do buy a 2 bed, it's probably best to buy in a nicer neighborhood (A-B). I never have issues renting mine out to quality people. 2 bed houses are a little harder to sell but since I buy in areas with highest demand, I wouldn't have any problems getting rid of my properties if needed. What matters most though is that the numbers work. Good luck