Home Buying in Palm Springs>Question Details

Pat Ludwig, Home Buyer in Palm Springs, CA

Is buying a 1 bathroom condo a bad investment?

Asked by Pat Ludwig, Palm Springs, CA Wed Apr 29, 2009

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My experience has been that one bedroom units have increased at the same rate as 2 bedrooms in a rising market, here in Palm Springs. Unlike perhaps some other urban communities, Palm Springs is unique in that there is a demand for one bedroom condos. Many people are buying these units as 2nd homes or investments- they don't necessarily need larger units. First time buyers often purchase one bedroom units as they are more affordable and a way to enter the market. I have had both 1 and 2 bedroom investment condos over the years, and surprisingly, the one bedroom units have always rented the easiest and produced the highest cash flow. I would definitely encourage you to research purchasing a one bedroom unit as a good investment opportunity.

Paul Kaplan
Pacific Union GMAC Real Estate
2 votes Thank Flag Link Wed Apr 29, 2009
Yes: You have correctly answered your own question!

The only time a one bath would be wise, would be if it were a one bedroom or studio condo. If you are looking at two bedroom condos, you definately need at least a 1.75 bath.

YOU may be fine with a one bath, but the next buyer will not be.............so look around a little more and find one with good re-sale value, otherwise it's not a good investment of your money. A two bedrom one bath will take FOREVER to sell and you will need to sell it at a "give away" price.

Create Yourself a Great Day! Nancy
0 votes Thank Flag Link Tue Sep 29, 2009
Dear Pat,

A one bedroom one bathroom condo can be a great investment, but it definitely depends on where it is and what it's close to. You don't specify if you are looking in the Palm Springs area, but if you are, then you could definitely make a one bed/bath condo a lucrative investment by turning it into a vacation rental or other type of income property. Personally, I don't think ANY real estate investment purchased at this time in our economy could be a bad investment, but location, size, condition and proximity are definitely factors you should take into consideration when making a final decision.

Good Luck!
Web Reference: http://www.crestico.com
0 votes Thank Flag Link Wed May 13, 2009
It really depends on the condo, location and price. Make sure you see all the properties that meet your criteria and then make your choice.
0 votes Thank Flag Link Wed May 13, 2009
Paul, I am giving you a "thumbs up", for your expert answer about your local area.

You are a professional there and you are correct every market is different!

I will certainly refer anyone I know who is looking in the Palm Springs area as you certainly do know your market there, just like I know my market here in Temecula.
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Wed Apr 29, 2009
Pat, Perhaps you meant one Bedroom? I am thinking that you are possibly asking this question because at the time there are only 1 bedroom/1 bathroom condominiums in your price range.

If this is the case then seek out the advice from a tax consultant. Sometimes renting can be a better tax advantage for you until you can afford something larger.

One bedroom, one bath condominiums do offer less in the way of resale value because there is a higher demand of two and three bedroom condominiums.

On the other hand if you need the tax advantages of purchasing and you want to keep your payments low then purchasing a small place may be alright for you.

It is always best to seek out advice from your tax accountant when deciding "If" you should buy.

Real Estate Agents can help you find out "what", to buy in your price range but offering any kind of legal advice or tax advice is better sought out by tax and legal consultants.

I have a tax consultant that I use here in Temecula, Fred Karma owner of Financial Accounting, but if you need one in Palm Springs then ask one of the local Realtors there in your area for a reference.

Good luck to you!
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Wed Apr 29, 2009
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