For some real estate investors, residential condominiums are the preferred type of investment property. Some benefits include that condos typically are less expensive than whole buildings and there are fewer management responsibilities because condo associations typically handle day-to-day operational issues like snow removal.
But, how many bedrooms is the ideal size to buy as an investment property?
As always, the answer is “it depends”. Some investors take a philosophical approach – for instance, some investors prefer 3 bedroom apartments since there has been increasing willingness for co-living arrangements, particularly because it tends to be much cheaper for renters to live with roommates in Boston. Others focus more on economics and might prefer the smallest possible units to try to maximize their rent per square foot.
Source: CoStar Multi-Family Market Report, Boston-MA, dated 11/12/2019
Source: CoStar Multi-Family Market Report, Boston-MA, dated 11/12/2019
Source: LINK Boston Quarterly Sales Summary, Third Quarter 2019, Citywide Report
The data shows that the ideal condo size for YOU will depend on your investment goals and criteria. Larger apartments (2-3 bedrooms) have shown a lower vacancy rate than smaller apartments over the past few years. Rents are higher for larger apartments as well, but of course purchase prices and expenses will be higher.
If you have questions about buying a condo as an investment, don’t hesitate to contact us. We would be happy to share more specific market reports and data. We also provide free consultations to real estate investors to review investment goals and when ready, help find the best opportunities for you!