Would you buy a four-plex with a new apartment building being built across the street?

[Chris Purcell]

I'm looking at a four-plex in Baltimore. However there's a brand new apartment building being built right across the street. I'm sure the building will be super high end with high rent (although I shouldn't assume on that, have to do more research.) But I'm just curious if most investors would stay away just because of the competition. The numbers are looking pretty good so it's worth investigating. 

[Jon Behlke]

@Chris Purcell

I'm no expert, but I would probably buy that building BECAUSE of the new building being right across the street.  Chances are you are correct in so far as they are probably building a higher end apartment complex.  This is great news for you on two fronts:

1) it should increase comparable rents in the area.  If somebody wants to live in that immediate area, there are only so many choices.  That building should drive up average cost.

2) not everyone wants to live in a large apartment building.  A four-plex offers a bit more privacy than an apartment building. 

These are just my thoughts, but I'd do it if I were in such a position.