2 Bedroom houses?

Question

Is it worth it marketing to 2 bedroom houses?    I am starting a marketing campaign to market to 3 bedroom houses.   Are 2 bedroom houses a waste of time for wholesaling or should I just market to them ad well.

Elizabeth Colegrove · Answer

Wat do you want to do with it? What does your market demand? That being said, in all of my markets, 2 bedroom places go for significantly less rent wise AND are harder to place a tenant.

Now if I had a FANTASTIC deal on a 2 bedroom and could turn it into a 3 bedroom do to awkward layout or mislabeled because its missing a door, or a closet. That would be a gold mine and I would close on that ASAP :)

Nicholas Miller · Answer

If the numbers work it doesn't matter if its 1, 2, 5....  bedrooms if the contract price right the building can cash flow for an investor it doesn't really matter

Stephen Goodman · Answer

There can be a hidden opportunity every now and then when an REO listing agent inputs incorrect information into the MLS listing, and the asset manager does not sufficiently verify the listing.  A couple of months ago I viewed an REO property that was identified in the MLS as a 2 bedroom 2 bath home.  The home actually had 3 full bedrooms with closets, and the square footage was correctly reported in the county tax records.

If you F&F and limit your search to a minimum of 3 bedrooms, you would have missed this underpriced opportunity.

Bob E. · Answer

If you are selling to the fix and flip crowd it will be tougher but check with your buyers, maybe you have a few fix and rent people that would be interested in those properties.  Start with your buyers, then find the deals that they need for their business.

Brandon O. · Answer

Oh ok we'll if that's the case then it's a good deal. Renting and having to potential to flip if you want is a good route, good luck! @Andrew Syrios

Andrew Syrios · Answer

Hey Brandon, I think we're saying the same thing. My point was that 2 beds can make for good rentals but are not usually good flips. The one major exeption is if it's a large 2 bed that you can easily change to a 3 bed. That provides a great value add opportunity because others may have passed over it for the sake that it was only 2 beds.

Brandon O. · Answer

Most people looking to buy a home are families therefor two bedrooms isn't sufficient enough for a family. Three bedroom at a minimum @Andrew Syrios

Andrew Syrios · Answer

2 bedroom houses are usually not great flips. That being said, if it's a large 2 bedroom and you can change it to a 3 bedroom (especially if it's an odd 2 bed, 2 bath house that you see every once and a while) it provides a great value add opportunity. If you can find end-buyers that will recognize this, there's opportunity there.

We buy 2 bedroom houses a decent amount because they make for fine rentals, so if you're looking to hold, they make sense.

Jason A. · Answer

Depends on the two bedroom and the location. For example, I recently sold an older two bedroom, one bath ranch with a full walk-out basement. When I hauled away all the junk in the basement, painted its walls, and had the floor professionally scrubbed, lo and behold, the effective doubling of the house's useable square footage and the potential to create additional living space down there (maybe even a separate living area) became a nice selling feature to prospective buyers. On deposit about two weeks after listing.

So sometimes it might make sense, especially on a limited budget, to check these out.

Michael Noto · Answer

For a wholesaler where every marketing dollar matters from what I understand I would think the 2 bedrooms would be tough because you do not know if there is the ability to expand to 3 bedrooms.

In general a 2 bedroom is not very desirable to a rehabber unless like has been mentioned there is the ability to make a 3rd BR.

2 Bedroom houses?

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