MTR 1bd vs 2bd vs 3bd???

Question

Can people share their experience with demand for 1bd vs 2bd vs 3bd MTRs? Some people will say 3 bedrooms are highly desirable while others will say 1 or 2 bedrooms are best.

Zachary Deal · Answer

@Kiernan LaFaver makes a lot of great points. I think the first thing to consider is location and if the property is more likely to draw traveling professionals such as nurses, tech professionals or contract employees or families. I would recommend checking out Furnished Finder and Airbnb/VRBO for 30+ days stays to see what else is in the market and get an idea of what they are renting for. Also, it may be smart to consider the differences in the rental rate if you were to decide to shift strategies to an STR or LTR one day. For STR data, you can check out AirDNA to get a good idea of approximate revenue.

Bonnie Low · Answer

Medium term rentals is a broad and growing niche. There are strategies that fit any of those configurations as well as others. From the travel nurse looking for a 1/1 to the high bed count pad split-type option where it's about maximizing beds for itinerant guests like airline crews. The key is to figure out what is in demand and under supplied in your area and what your particular property is suited to. Make sure to consider the bathroom count, too. I've seen many people put a 3/1 or even a 4/1 into service and wonder why they're not getting any bookings. If you intend to do the rent by room strategy the ideal situation is for each guest to have their own bathroom or, at the most, to have to share it with one other person. But they won't pay a premium for this so price accordingly. If you haven't purchased a property yet, be sure to look at others in your market using sources like Furnished Finder, Airbnb for longer stays and even Zillow and apartments.com which are both showing more and more furnished listings. Look at the properties themselves to see what the competition looks like in terms of quality and amenities to make sure you can be competitive and look at their calendars to see how much demand there is.

Kiernan LaFaver · Answer

I believe this question is entirely dependent on a few things:

1)demographics for the area. Is it single young professionals,people in town for a short term job thats contract related, or families? The first lends itself to smaller properties and potentially higher turnover, whereas 3 could appeal to a larger group of people that may be there for a longer time period. 2)what’s the typical income of someone that rents in the area? Obviously a 3 bed will rent higher than 1 bed, but it needs to reflect current market conditions and standard rents

3) perhaps the biggest question and relates to 1/2. What’s the cash flow/investment potential for each situation? Numbers need to make sense for you since it’s your money. This isn’t necessarily correlated to 1 bed vs 3 bed, but is property specific

Objectively speaking, I do believe that 3 beds are much more marketable and have the highest amount of potential attention/tenant pool.

Johnson Best · Answer

anyone invests in Phoenix area?  Whats the most ideal # of rooms best rent and low vacancy rate?

Allen Duan · Answer

Yes this is market dependent and tenant demand dependent. In our market Los Angeles, 1 bedrooms and 3 bedrooms have done well for us. 2 bedrooms have underperformed. I have my theories for the reasons why which may or may not apply to other markets.

Colleen F. · Answer

@Toluwalope Cole  Market dependent but medium term you are mostly going to see 2/1  1/1  get you the best return and have more demand.  bigger units for people relocating might have higher demand but only in some areas.

Nicole Heasley Beitenman · Answer

We were big fans of 1/1's and 2/1's even before getting into the MTR space. In my market, there just isn't a huge demand for insurance displacements or other niches that have need for 3 bedrooms and are willing to pay for that extra space. But it really depends on your market and the niche you're targeting. I recommend networking with other MTR operators at your local REI meetup for market-specific feedback.

Johnson Best · Answer

can i get some inputs from people doing MTR in Phoenix area?

Jeremy Jareckyj · Answer

Totally area dependent. You have to determine what is driving that MTR demand and also which area of MTR demand needs the most housing. 1-2 beds do best by me. they are always in demand.

Carlos Ptriawan · Answer

Why not 6 BR ?

MTR 1bd vs 2bd vs 3bd???

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