John Marshall - FORE!, Specializing in Golf Course Properties (LoKation Real Estate)

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Rainmaker
1,153,050
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

ROI is the only thing one should foucus on. Cash flow is second.

The rest is all for debating purpose.

Aug 22, 2016 07:43 AM
Rainmaker
1,386,168
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

In my market for SFRs, 3br and above are the best.  It all depends on the location too.  Simi Valley demands more rent than Oxnard, but you can get a house cheaper in Oxnard.

 

If 2BRs are the hot item, I'd look into finding units I could convert into mulitple 2BR units on the same lot or some duplexes.

 

In general, as Ken Jones has said a few times, SFRs are not the best investment.  Having multiple units on the same piece of land is the best.  If you have an SFR and it's vacant, you have 100% vacancy and loss of income.  If you have a duplex, triplex or quadplex and you have one vacancy you are at 50%, 33% and 25% vacancy and loss of income (respectively). 

 

Me, I have three SFRs and I know people with over 40 SFRs.  I'm looking to branch out into the 2-4 unit properties (since the regs get considerably different out here once you go over 4 units and in some parts very landlord unfriendly).  That's my target for next year is 1-2 new rentals, at least one a multi-family unit.

Aug 23, 2016 03:16 AM
Rainer
4,620
Jason Smith
EXP Realty - Phoenix, AZ
Working with Sellers & Investors

The answer may be in how ling it takes to sell the 2 bedrooms in your area, while you may be worried about returns in the beginning, at some point you will want to sell, and the future value of the 3 bedroom vs the 2 bedroom coupled with the time it takes to sell may change the decision you make now when calculating the total return throughout the lifespan of the investment.

Aug 23, 2016 03:16 AM
Ambassador
4,312,759
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

John Marshall - FORE! - not an investor - yet!

Decide what do you prefer, Cash flow or Appreciation and plan accordingly.

Aug 22, 2016 03:27 PM
Rainmaker
2,640,732
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

NO HOA if possible...SFD rules the nest and will always be in demand. Anyone who can get a duplex, triplex or five unit is sitting on pure gold for retirement...if you can get a 3 over a 2, do so. Storage space is in demand

Aug 22, 2016 10:27 AM
Ambassador
2,224,167
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Look at the cap rate on each one. If you can command top rent for a two bedroom, but buy one cheaper, then that might be the way to go. Although only a check of the numbers will answer that. 

Aug 22, 2016 09:01 AM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Depends on the market. If it is school driven then 3 and 4 bedrooms, young people 2 bedrooms, or short term resort type area rentals 1,2, and 3 bedrooms.

Aug 22, 2016 06:43 AM
Ambassador
3,986,710
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

We are presently investing in condos and like that they are all together and there is an HOA looking after things.

Sep 13, 2016 11:19 AM
Rainmaker
821,117
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

John - take a look at my recent post Should I Buy this Home as an Investment Property, it might help.

Aug 23, 2016 02:50 AM
Rainmaker
1,639,426
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

We direct our clients to 3/2 whenever possible, unless a condo at the beach; then 2/2.

Aug 23, 2016 12:37 AM
Rainmaker
1,459,427
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

John Marshall - FORE! It depends on the locale. No two bedrooms except for apartment buildings. Sam Shueh has this one.

Aug 22, 2016 11:29 PM
Rainmaker
4,799,481
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

There's no hard and fast rule.  Each property needs to be evaluated for it's potential.

Aug 22, 2016 10:59 PM
Rainmaker
1,722,050
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

Doesn't matter as different areas offer different types of deals.

Aug 22, 2016 10:44 PM
Rainmaker
3,329,712
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I like 2-4 family buildings. With a single the loss can be great if that tenant stops paying or moves out. 

Aug 22, 2016 10:09 PM
Rainmaker
6,597,738
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This will vary by market.

Garden apartments with 100 units or more are better investments in our area.

Aug 22, 2016 09:52 PM
Rainmaker
4,433,683
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

It depends on the location. 

Aug 22, 2016 09:21 PM
Rainmaker
3,069,984
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Sam Shueh nailed this one!

Aug 22, 2016 08:38 PM
Rainmaker
4,093,732
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

So many different factors to consider.

Location.

Cash flow versus appreciation.

Personal goal.  

 

Aug 22, 2016 08:04 PM
Rainmaker
634,282
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

Four-plexes are a good investment in many areas, easily managed and in areas that have good ROI on single units the four-plexes are often golden.

Aug 22, 2016 07:07 PM
Ambassador
3,750,197
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I have Two 2 bedrooms and they rent well; but I love my duplex. 

Aug 22, 2016 03:36 PM
Rainmaker
2,442,558
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Not an investor, sorry.

Aug 22, 2016 12:38 PM
Rainmaker
1,157,485
FN LN
Toronto, ON

It depends on many factors.

Aug 22, 2016 11:48 AM
Ambassador
5,401,094
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

My first choice is always timberland property, but for residential investments I have by far my best returns on 1 and 2 bedroom units, anything larger generally does not do so well.

 

Aug 22, 2016 10:24 AM
Rainmaker
5,578,436
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

John,

Each market place is uniquely different, what works well here are rental in one of the best school districts.  A

Aug 22, 2016 08:06 AM
Ambassador
2,806,678
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Jon - If 2 bedroom homes are significantly cheaper right now, and are getting good rent, there might be a good appreciation upside - they've really gone up in value in our market.

Aug 22, 2016 07:44 AM
Ambassador
4,576,494
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

It really depends on the particular market. See Joe Pryor 's answer!

Aug 22, 2016 07:38 AM
Ambassador
3,722,444
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

This is one of those things where you have to look at each property on its own merits.  And it's a super hyper-local calculation that can change over time!

Aug 22, 2016 07:28 AM
Rainmaker
5,571,804
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

great guidance from Joe Pryor ....common sense direction....

Aug 22, 2016 06:53 AM