All Forum Posts by: Darnell Cleary

Without much more information regarding the specific property a four bedroom will be more desirable than a three bedroom in the same market so would make for a comparably better rental. This is especially the case if you are in a market where a four bedroom is the dominating size (most common). 

That being said, from a profit potential, it will be very dependent upon the property, at what price you purchase, any renovations and what price you are able to renovate, etc. The numbers could work out on your timeline that a three bedroom is more profitable. 

But again, if we are talking pure comparison with all things being equal (normalized) the four bedroom will be better.

I didn’t read through every single post but one thing that might be helpful is to run your dad through the same process you would with other investors. Sometimes, I’ve found that we skip some the important “process” steps with family because of relationship and they don’t get what value we add to the deal. After you run through the entire process, then open for negotiation. If he wants to keep more of the split, maybe that means you offer less of your service. What’s most important in transactions with family is that you all completely agree and don’t feel resentment about any part of the partnership. Otherwise, it comes up, even if everything ultimately goes well, and that’s not worth the negative impact on the relationship. 

Hope that helps.