Size Matters: Your Real Estate Investment Guide
Many people have the desire to invest in real estate. They see the returns, appreciation, and all the hype and are ready to start but are unsure of the best-size single-family homes to invest in. Well, the bedroom count depends on the market and the type of investment you are looking for. Each bedroom count has its pros/cons, and I will cover each below so you can better choose the size that fits you.
Two Bedrooms: Two bedrooms are ideal for young couples, professionals, or small families. These will be most affordable for the renter and the investor. You can never go wrong with a two-bedroom. As the landlord, you can attract young professionals looking to expand or young people with a roommate. If this is the demographic you are looking for, this is the perfect size home.
Three-bedroom: 3-bedroom, two-bathroom homes are the best investment for most markets because they typically have the highest resale value. These are the most popular size homes amongst buyers and tenants. They also tend to have the lowest vacancy rates out of all the options because they appeal to the most significant number of tenants, providing a steady income stream for the investor. They can cater to families, roommates, or even single looking for large spaces. The high demand allows for higher rent prices, lower vacancies, and a happy investor.
Four bedrooms: 4-bedrooms will provide the most significant revenue due to their size and the most expensive investment. They would appeal to a smaller range of tenants but a better tenant since families tend to keep a space cleaner and maintained. Another pro of a larger space is that families are less likely to move, meaning that once you find a tenant, that tenant is expected to stay for longer, thus decreasing the constant need to find new tenants.
Every investment has pros and cons; the
investor must find what works for their investing style. There is no “wrong” investment. I would always recommend doing thorough research, finding your likes and dislikes, and keeping up with what suits your target market the best. If the numbers make sense, do not hesitate to take those next steps.
If you need help finding an investment property that works for you or are ready to take the following steps on a place, call me at 561-371-5143.
Kyle Camerlinck
