Many single family home investors want to know what area to buy in but don't ask about other features. After settling on the area they want to own, they need to focus on the features that will garner the most rent and cost the least in terms of purchase price and ongoing expenses.
2 bedroom homes are the least desireable. With this small home you are competing with duplexes and apartments. You will also likely experience more turnover as it is unlikely to have children who might be in school.
4 bedroom homes are larger and would seem to be a good investment. The problem is they cost more to paint, clean, and maintain. They will also likely have more people living in them so wear and tear will be more severe. The rent will be somewhat higher, but not usually enough to make up the difference in repairs and purchase price difference. I would say this size runs a close second.
3 bedroom homes have the benefit of less people in them, but not so few that moving is too easy. They cost less than 4 bedroom homes but the rents will likely be very close to what a 4 bedroom will garner. So, look for 3 bedroom homes but take a low priced 4 bedroom if you come across one.
Other features to look for will be discussed in my next blog.
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