Works well in kitchen, bath, laundry, mud room, living room, bed room.

For instance, you have four bedrooms but they're small and the overall size is small vs. other four bed units. 

I will add a half bath now, and then an addition of a master bed and bath before resale. 

Let's say traditional:You would need at least 20% downPurchase Price: 84,900Down Payment: 16,980 (down payment)Financing: 67,920Monthly Payment: 327 (PITI 500 or less)Two beds are renting for about 750 month in that area50% rule leaves about 375 to pay Mortgage.That is very slim, and if the monthly payment is more than 375 then you are losing money.However, that is just one scenario out of many involving a lease option.You could have the tenants pay a premium which would cover the mortgage and get you some cash.

(Audio visual equipment, expensive bed, appliances, etc.)

3)do you find it hard to rent a SFH when so many 2 bed apartments are cheaper and in same area?

Here are the stats.3 bed that had the 2 smaller bedrooms modified to make one large room. so currently a 2 bed 1.5 bath.

I totaly forgot to put in the details:SFH3 bed / 1.5 Bath1140 Sq FeetContract Purchase Price 125,000Closing costs: ~4,000Budget allowed for fix up: 8,000 (seeking contractors that are investor friendly in the Sacramento Area if you know any) Down Payment: 25,000All in costs: 37,000Expected rent: 1,200 per monthLess Vacancy allowance: 1,100Income: 1,100 per month/ 13,200 per yearExpenses:PM: 120 per month (even though I plan to self manage aka pay my self)Repairs and maintance: 120 (using 10% for now as I will have a sizable reserve set aside to start but there should be very little needed after fix up)Insurance: 63.75 per monthUtilities: 0 (I plan to have all utilities paid by the tenant, water I will cover and bill back to tenant on the next months rent, looking for insight on this from other Sacramento landlords)Total Monthly expenses: 303.75Net Operating Income (NOI): 796.25 per monthDebt Service (PI): 521.65 (100,000 @ 4.75% 30 years)Property taxes: 130.00 per monthNet Cash flow: 144.60 per month / 1,735.20 per year Plus PM Fees: 264.60 per month / 3,175.20 per yearEstimated equity at purchase after initial fix up / rehab: ~75,000

Hi All,just got put onto this site by an investing colleague of mine - what a phenomenal resource.I am looking at a 4-plex, it'll be my second rental purchase, already have one established, albeit SFR.When I look at comps the nearest 4 plex units are all 2 bed 1 bath, and one sold as recently as Dec 2014, so is a good guide for me.What is a good strategy to estimate value in the 4 plex of interest to me which is 3/2 as it's the only 3/2 layout compared to the other 2/1's.I have averaged number of rooms and applied this to larger 4 plex, eg sold for value divided by 8 (2bedx4 units), divided by 12 (2 bed, 1 bathx4) , then multiplied this by 12 (3bedx4) and 20(3bed, 2 bathx4) and I have also used square footage ratio's to gain a value on the larger property.Are any of these methods feasible and if there's a better method, I'd love to hear it.For the record, these comparative units are all in the same subdivision, are architecturally similar, so direct comparisons in this case are pretty close.Thanks in advance,Michael.

The house is 3 bed 1 bath all brick 1789 sq. ft.