Rent in SFR vs multi family properties

[Katie Printz]

I’m looking at a potential first property to buy and have a question on rental rates. For my analysis I used rent-o-meter to get an idea of rates in the area that I’m looking. The property I’m considering is a fourplex.

My question is: are rental rates for SFR and multi family units pretty similar or does one type of property usually get a higher rate that the other?

[Steven Foster Wilson]

@Katie Printz put yourself in your renters shoes. You are looking for a 2 bedroom place. You see two options:

1. Single Family house, front yard, back yard (maybe even a spot for a firepit), it is a place to call your own.

2. An apartment building, has nice entry way, nice feel to it but you are living amongst others.

Everything else held constant a SFH will always bring in more rent, but it will most likely cost you more to buy in comparison to the extra rent you would gain. Buy the fourplex and rent out the apartments, you will make more money in the long run.