Sometimes larger homes have a weird layout too, and that often doesn't reap a higher value.

Kitchen will be just average with not an idea layout.

You confirmed what I intuitively knew to be true.   

Expected rent is approx $2500/month.Both are the same model- 5 bedrooms (4 up, 1 down), 2 1/2 baths (2 up, 1/2 down) and both are in very good shape, move in ready, etc.Differences:House 1:Finished Basement, but no bathroom in basement.Gas fireplace- selling point in COPaid-for solar installation (could save renter approx $50-$100/month on electricity)Small backyard with retaining wall and trees that make it look/feel even smaller (bad for small kids and dogs).Residential street but higher traffic since it's a "feeder" to the neighborhood.House 2:Better curb appeal from street Less traffic on street.Back yard is bigger, but feels a lot bigger due to layout (better for young kids and dogs (Everyone in CO has a dog)).VERY close to excellent Elementary schoolNo fireplace.Unfinished basement.My wife and I think House 1 would be better for families with teenagers (can go to basement) and House 2 would be better for families with small kids (can play in back yard).Any advice appreciated- thanks!

Our leasing team is just leasing@  my company.com and if you go to our website there is a post about harvey. you know i was thinking about this, theres tons of new capacity in big multi units that i would imagine are getting filled up real quick... 6 month leases so people can just fix and leave... it already had a big hangover of inventory so your comment doesnt shock me...though its VERY interesting and counter-intuitive and hard to imagine

I would lean to a side by side ranch style layout with garages in the middle and no shared living space walls.

One thing that comes to mind is privacy after someone moves in or potential thieves knowing layout of house or something else crazy that people might think about. 

Some tenants have a set of site plan drawings and if they cannot get the exact layout they want they move on to the next site.If the site is the only game in town or the A plus site just the shape has some challenges tenants will generally overlook.

The already typically have site plan layouts maybe 2 to 3 and site criteria.

We sold a place around the corner this past fall with a similar 2nd/3rd floor layout and we found investor buyers and owner occupant buyers liked the uniqueness of the apartment as the market does not have many 3 bed/2 bath units.I'll post the link to the flooring here shortly also.