All Forum Posts by: Ryan B.

I would like to know everyone's thoughts in regards to 1 bedroom apartments vs. efficiency apartments.

Here is the deal:

There are a large number of rental properties that I have been looking at that were actually houses built 40, 50, 60 years ago, that have now been split into two different apartments (one apt upstairs and one on the main floor). Most of these conversions seem to have a 2 bedroom apt. and then either a 1 bedroom apt. or efficiency apt on the second floor.

The good thing is, usually either way it is split, I would be able to get them to coincide with the 50% rule.

I would like to know what your experiences are with efficiency apts. I do know that I would probably get approx. $75 more a month for the 1br compared to the efficiency. Of course, more money is always better. Has anyone ever had more problems renting an efficiency apt. compared to a 1br?

Thanks

NC Mark,

I have noticed that some people do move to where there is more opportunity, but we are pretty much grounded here in the middle of Illinois. I do know that this will somewhat limit the amount of good, cash flowing rentals that are available.

We live about 30 minutes from a metropolitan area that includes approximately 150,000 people. My wife and I would both prefer our children to stay in our small town (population of 1900). The good thing is I have been keeping my eye on the available rental properties in the metro area, and there seem to be several available at all times that fall into the 50% rule. Yes, they are in areas of the town that I would not personally want to live in, but they are by no means war zones.

Maybe once the kids are out of school (not for another 14 years) my wife and I may decide to move to a better area of the country for real estate investing, but for right now we really enjoy the small town life.

Howdy y'all,

I have been reading the forums of this site non-stop for awhile now and figured I should finally dip my toes in the water.

My name is Ryan and I am a newbie to the real estate investment business. My wife and I bought a fixer upper house several years ago and I finally finished it January 2010. Due to the family growing, we wanted to move to a larger house in a smaller town. We decided to keep our little fixer upper and turn it into our first rental home. Our plan is to keep the house for about another year and then sell and capture all the sweat equity that I put into it. We are planning putting the profit into a 1031 and reinvesting into other rental properties.

We have a long term goal of someday me being able to quit my full time job and become a full time landlord. Our plan is to invest in lower middle class/blue collar rental properties that we will buy and hold.

I have to admit that I get a kick out of reading MikeOH's posts, and yes I did buy his book. It is really scary (just kidding) that I find myself with what sounds like the same attitude and mentality as Mike. Only problem is we are not allowed to conceal carry in IL (guess that is where the 2x4 in the truck comes in handy).

I don't know what else to really say, but I will take any advice/criticism that anyone has to offer. I am like a sponge and I want to absorb as much knoweldge as possible.

Thanks,

Ryan