Investing In Real Estate To Rent? Focus On Less Desirable Homes

When most people buy a home, they do it with the intention to accommodate the family they have or the family they would like to have in the future. Some people will buy a starter home and then move to a bigger home when they outgrow their current home, which then directs them straight to family-oriented homes. This detail makes larger properties more desirable than smaller ones. As a real estate investor that wants to rent out homes, you should focus on the properties that are not as desirable to families.

School District

It is not necessary to pay that much attention to the quality of the school district in a given neighborhood. While home buyers looking for a family home will want to thoroughly analyze this detail to make sure their child goes to the best school possible, you are buying a property to generate a profit, not send a kid to school. Since your investment revolves around making money from rent, your renters will be more focused on how many bedrooms and bathrooms you have, as well as its general location.


One and two-bedroom homes are not that common, but they are also not that popular. Most apartments consist of 1 or 2 bedrooms, and people buying are interested in upgrading, not keeping things the same. If you can, you should try to target 2 bedroom properties, as they are perfectly rentable, but they are not going to receive as much competition compared to 3 or 4 bedroom homes. This makes it easier to get in the first offer, run into less competition, and have a stronger platform for negotiating.


Most families now live in homes with two bathrooms, so it is a perfect opportunity to look at properties with 1 bathroom. A 3 bedroom, 1-bathroom house is an excellent example of a home that does not appeal to that many buyers, but will serve as an excellent investment rental property. It has 3 bedrooms, which will help you get 3-bedroom market rates, and the bathroom should only have a small impact on how much it affects value and interest by renters, which will mainly just deter decent-sized families.

Square Footage

Another thing that you do not have to worry about that much is square footage. It is typically when people are buying a home that they pay close attention to this detail because renting is temporary. If someone wants to find a larger place after a 1-year lease, they are free to do so. But, this does not make it any less profitable for you as you will naturally go through tenants throughout the years.