I duplex/triplex always a better deal than single family home?

[Susan Tan]

Is the multifamily apartment always a better deal than a single family home if both types of properties are in same neighborhood, same price? How do you look up comparative prices on multifamily homes? Rentometer has a max limit search of 6 bedrooms and doesn't have a triplex filter. I'm considering between Cincinatti residential properties that are duplex/triplex vs single family.

[Aaron Taylor]

Originally posted by @Susan Tan:

Is the multifamily apartment always a better deal than a single family home if both types of properties are in same neighborhood, same price? How do you look up comparative prices on multifamily homes? Rentometer has a max limit search of 6 bedrooms and doesn't have a triplex filter. I'm considering between Cincinatti residential properties that are duplex/triplex vs single family.

 No, the multifamily may not be a better deal.  You have to look at the financials.  These same things exist in my area, and you'll have something like:

house for 100k renting for $1k

house converted to triplex for $100k renting for $1500

Now on the surface you'd say the triplex is a home run.  But as you look into it you see:

no separate water meters so the owner pays

no separate electric meters  so the owner pays

no separate gas meters so the owner pays

have to pay trash

have to mow/handle snow

higher property management fees

etc

So the single family might be making way more money at the same price, despite the fact that the triplex has $500 a month more rent.  And then you have to look at the roof and the fact that 3 units has 3 times as many furnaces/ac's in some cases that may need replacing.

A lot properties look like gold mines on the surface when they're really anchors.