Apartment Unit vs. Single Family Home

[Michael Johnson]

BP Community:

I am a new real estate investor seeking to purchase my first investment property. I am in need of advice of wheather to purchase a single family home or a single apartment unit.

To provide you with a little background on the apartment unit property I am viewing here are the numbers:

4 bed 4 bath in a college town

93% occupied/filled rate over past 3 years

Asking price: $85,000

Down payment: $17,000+(2-3% closing cost)

Mortgage payment: $443 with mortgage, property taxes, and insurance (assumption 4.25% interest rate)

Monthly Rent per tenant: $350

Monthly HOA Fee: $250

Monthly profit: ~$700+

One of the factors that is holding me from the deal is the following:

1.) greater appreciation if I was to buy a single family home vs the risk that additional apartment complexes are built in the college town

What are your thoughts experienced real estate investors? Thank you in advanced.