Types of homes to target
Before I started reading about Sub2 and wholesaling, I did read the ol' Carlton Sheets course.
One thing that stuck in my mind was his proclamation that you shouldn't buy anything other than 3+ bedroom homes, because those are the most marketable.
I guess this is somewhat true, but does anyone doing sub2 or wholesaling let this get in their way? Do you stick to the 3+ Bd houses, or do you go for the seemingly lucrative deals in whatever form?
What guidelines do folks follow with regards to the type of house they go after?
DK
The problem with 2 bedrooms is they sell slower. If you are in the city where you will find most of them anyway if you have say a porch or carport or something they can see as a 3rd bedroom you might have something. Again a question you want to ask is am I doing bread and butter houses or say popular areas. Some of the craftsman and other houses sell fairly quick it depends on the avaliblity of the 3 bedrooms. So not in all cases. Carlton uses a rule of thumb for beginners mostly.
the reason that Carleton and most others recommend sticking with houses that size is that your potential market is so much larger. It's got something to do with the whole 2.3 kids per household thing. Size is important. If you find a 3 BR with only 700 Sq Ft. You'll find that it's hard to sell also.
Good luck,
Jeff
1 bed, 4 bed, 10 bedroom with an out house, everythings popularity is in proportion.
Every home will sell, the main factors are location, condition and price.
The exception is the odd ball property in proportion to bathrooms.
With price, location and condition being the same, I would take a 2 bedroom house with 2 bathrooms over a 3 bedroom house with 1 bathroom every time.
You would be surprised what the comps in the MLS will show you. Pull up the 3/2s in an area and then the 3/1s in the same neighborhood and see what you find out.
I tend to go with the immediate neighborhood as the primary factor, since that's what I am swayed by myself. I'd rather be in a good area and make do with a 2/1, than have a 4/2 in a boring suburb anyday - and my gut says there are others swayed by the same psychology. In a hot area, anything sells; in a slow climate, see what the hottest sales have been, ask any realtor. Look for potential to improve; I like to find unfinished basements, put in some nice windows to transform the place with light, treat it like a first level, and it's a winner. Or add even 1 BR, or expand a 1/2 BA into a 3/4 or full; I look toward adding value, and go with good areas. J1HO