Can You Pick The Best Ones?

Hey there,

Apartments are apartments, right?

Wrong.

Number of bedrooms, layout, square footage, ceiling height, entryway door position… all factor into the value of an apartment to a prospective resident AND buyer.

Knowing what unit style is in demand in certain markets reduces YOUR risk as an investor.

Below, I have included images of 4 different types of units. Focusing on the number of bedrooms, how would you rank them in terms of ease of leasing?

Studio | 1-Bed | 2-Bed | 3-Bed

Here’s our experience:

Easiest ↓

1. 1-Bedroom (many single people are looking for this)

2. 2-Bedroom (good for a couple, have extra space/work room)

3. Studio (single person on a budget or extended stay)

4. 3-Bedroom (family size but now competing with rental houses)

More Difficult

A property filled with 1-Bed & 2-Bed apartments is much more attractive as a buyer/investor than a property that is 50% Studios & 50% 1-Beds. The vacancy risk is lower on the former than the latter.

When we look at properties, unit type is one thing we certainly take into consideration.

This is one example where the evaluation of a multifamily property is more than just numbers.

Questions always welcome!

Nate & Steven
Rust Belt Capital, LLC

www.rustbeltcapital.com

_Disclosure:
Rust Belt Capital, LLC is not a Registered Investment Advisor. Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Rust Belt Capital, LLC does not provide tax advice and does not represent in any manner that any outcomes described herein will result in any particular tax consequence. This is not an offer to buy or sell any security. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees, and expenses. Prospective investors should consult with a tax, investment, or legal adviser before making any investment decision. Distributions or profitable investments cannot and are not guaranteed. Not intended to be tax advice and should not be solely relied upon to make an investment decision.