Question for you all: Appreciation on tri/four plexes

[Charlene Stovin]

Hi all

I am trying to purchase my first rental; I was pretty decided on SFR but recently found out I can get a better rate if I consider more units.

I am very familiar with the market here in Texas for SFR, but how do duplexes, tri-plexes, and quadraplex appreciate in comparison to SFR?  If you were a first time investor, would you stick to SFR OR more units?

Any added advice?

[Chris Mason]

Originally posted by @Charlene Stovin:

Hi all

I am trying to purchase my first rental; I was pretty decided on SFR but recently found out I can get a better rate if I consider more units.

I am very familiar with the market here in Texas for SFR, but how do duplexes, tri-plexes, and quadraplex appreciate in comparison to SFR?  If you were a first time investor, would you stick to SFR OR more units?

Any added advice?

2-4 unit real estate appreciates slower than SFR.

Emotions are a component that can drive sales prices up. The emotional buyers do not want to share walls or deal with tenants, they want a big single family home to nest and make babies in. 

The dial between cashflow and appreciation is always there, it never goes away, and it has no exceptions. 2-4 unit means the dial is turned a tad more towards cashflow, a tad away from appreciation.