whats better bang for your buck

[mzaurrini]

whats a better bang for your buck when it comes to purchasing rental properties is it better to get 1bed and 1 bath,or a 2 bed and 1 bat, or 3 bed 2bath or 2bed 2 bath condo, house , town house etc im lookin in the north east edmonton area if anyone could give me feed back that would be great.
anyone know whare you can get some good positve cash flow

 

[Kimberly]

Ontario = good positive cash flow - would balance your Alberta equity growth properties.


Kimberly

 

[mikecunning]

QUOTE (mzaurrini @ Dec 3 2007, 05:52 PM) whats a better bang for your buck when it comes to purchasing rental properties is it better to get 1bed and 1 bath,or a 2 bed and 1 bat, or 3 bed 2bath or 2bed 2 bath condo, house , town house etc im lookin in the north east edmonton area if anyone could give me feed back that would be great.
anyone know whare you can get some good positve cash flow


There is no hard and fast rule about which one is better. You need to evaluate each property on it`s ownas it relates to your own investment goals. Good luck.

Mike

 

[donksky]

a lot of real estate investing material recommend 3 bed, 2 bath as most marketable...I`m a newbie but if you want to know - I look at vacancy rates in area I`m interested in- in CMHC - some areas have very low vacany rates in 1 bed & 3 bed but very little demand/high vacancy for 2 bed so I wouldn`t invest in 2 bed - then I compare the price differential bet. the high demand types- e.g., 1 bed & 3 bed compared to potential rental rates/earnings to see where it`s better worth to invest in. Some say you also look at price/earnings ratio - house`s selling price/annual rent & compare with others within the neighborhood or to another target property to see which has better appreciation potential

 

[DennisEpp]

QUOTE (mzaurrini @ Dec 3 2007, 06:52 PM) whats a better bang for your buck when it comes to purchasing rental properties is it better to get 1bed and 1 bath,or a 2 bed and 1 bat, or 3 bed 2bath or 2bed 2 bath condo, house , town house etc im lookin in the north east edmonton area if anyone could give me feed back that would be great.
anyone know whare you can get some good positve cash flow

in N/E Edmonton, I would overall suggest looking for an up/down duplex, or home with an RF3 zoning or higher. 3 bed and 2 bath is best if just one level, on townhouse condo 3 bedroom and 1 1/2 bath, apartment style condo 2 bedroom with 1 1/2 bath or 2 bath

dennis

 

[Frank]

QUOTE (mzaurrini @ Dec 3 2007, 06:52 PM) whats a better bang for your buck when it comes to purchasing rental properties is it better to get 1bed and 1 bath,or a 2 bed and 1 bat, or 3 bed 2bath or 2bed 2 bath condo, house , town house etc im lookin in the north east edmonton area if anyone could give me feed back that would be great.
anyone know whare you can get some good positve cash flow


Hello,

I have found additional bedrooms to provide the most value. It very much depends on your goals and objectives but the ROI on a 3rd or 4th bedroom can be positive. For instance, I recently purchased a 3 bedroom townhouse in NE Edmonton for $275K and have secured a one year lease at $1650 per month. If this townhouse had 4 bedrooms I could potentialy market this at $2000 per month which is only $500 per room for 4 individuals vs $550 for the three bedroom shared by 3 individuals. Purchase price between the 3 & 4 bedroom versus additional rent would be the determining variables. Of course there are also limits as to what the market will allow but with creative marketing you never know...

Good luck...

Frank