One storey or 2 storey?

Question

Folks,For renters in the austin area, do folks still prefer single or double storey? I'm seeing a trend where the single storeys seem to sell out faster and for more price (for the same sq footage) - but this put me at a disadvantage if I were to buy a double storey?Thanks in advance.

Joe Scaparra · Answer

For me this is one of the easiest decisions to make. When buying a duplex, I ALWAYS buy ONLY single story. Two main reasons. 1. First it is easier to maintain. A water leak in the bathroom upstairs can lead to repairing the ceiling downstairs or mold problems in a wall that has had water dripping down it for some time. There is always issues with stairs over time. 2. My future renter is a baby boomer (65 yrs and older) who is living on social security but has knee or hip issues that prevent going up stairs. A boomer is turning 65 every 10 seconds, 10,000 a day, 4 million a year for the next 18 years. Boomers will be ideal tenants, they will have little wear and tear, stable, with fixed budget, but will pay rent before they pay other bills as they don't want to move again. So yes most people will want single story duplexes, especially if kids are involved as the noise level from up above can become an issue as well.

Danny Webber · Answer

Also, keep in mind that very very few properties will cash flow off the MLS with 25% down unless you step outside the city some.

Danny Webber · Answer

depends on location but most people want a 4/2 so that normally requires a 2 story unless the bedrooms are small

Alex G. · Answer

My biggest issue with a 2-story house in a moderately priced neighborhood is heavy increases in costs of upkeep or rehab for that matter. The 2nd floor exterior is usually siding, not stone or brick. Replacing the siding is a major expense; painting the siding and trim on the 2nd floor could run up $3-5K in expenses by itself. On the interior, even with the same overall footage, a 2 story is always much more expensive to paint. You got stairways and high ceiling foyers / living rooms that are hard to get to for the painters - and it’ll cost you dearly when the time comes to paint. Stair railings are a pain in the butt to paint and will add to the costs. When putting in flooring you now got stairs to deal with. Your typically installer will charge you $45 per stair in labor to install laminate or wood, plus increased cost of materials for stairnoses and such. Stairs are also an area of high liability, if you fail to maintain your railings in good order and somebody falls. If you’re tiling the floors upstairs, you’ll often have to put hardy board on your subfloor before you set the tile. That again will result in higher labor and materials costs. @Joe Scaparra already mentioned the extra risks from leaks in the bathrooms situated upstairs and higher costs of repairs when they leak through subfloors. One significant positive for a 2-story is - with the same footage you got a lot smaller footprint. This translates into a larger backyard - a more desirable feature for a tenant or buyer. You also got a smaller roof and may save money on roof replacement. If there is a choice, I’m all for 1 story houses. That said, sometimes the right deal comes along and it doesn’t matter if it’s a 1-story or 2-story. You just have to figure the cost increases into your spreadsheets. Happy bargain hunting!

Tim H. · Answer

Vik - single floor Vs double floor is less important if you have a ground-floor master bedroom. I recently sold a high-end duplex with most of the private space (2nd master and 3rd bedroom / shared bathroom) on the 2nd floor. But because we had the master at the front of the house and downstairs, it was a much easier sell. Parents will often prefer to be on the ground floor with children upstairs.

Beau Fannon · Answer

Different demographics prefer different setups. A two-story in a good school district will have no problems leasing on a seasonal basis. A one-story will lease better in a neighborhood with an older population. You need to know your neighborhoods.

Vik J. · Answer

Thanks all. @Joe Scaparra: you talk about demand along I-35. What about 183/183A (Leander, etc.)?

Joe Scaparra · Answer

It might be helpful to know what type of property you are looking at to rent. Duplexes in Austin are in high demand both by investors to buy and for renters to rent. I am a buy and hold investor. Been buying since 2002 and have not sold an investment property yet. Since my units are generally 1000 sq ft or less, I have been renting to small families or young individuals/couples. If you are looking at higher end homes, location and school districts become more important. But since my duplexes would be considered entry level homes (or affordability factor important), location and school districts become less important. Having a well maintained rental property is all that is required to keep it rented. Demand is through the roof. May not be so in other areas, but most anything along the HWY-35 corridor from San Antonio to Dallas is hot! If you're in for the long haul then looking at demographics is important. What is now and what is to be anticipated down the line. Single story most likely will be more desirable than 2 story for most renters, regardless of age if your property is entry level.

Vik J. · Answer

Thanks. that's useful.