Area SFR or 4-plex consideration

[Eric Mukai]

Hi, I'm wondering what those of you out there would do in my shoes. I'm toying with two different properties to buy, I'll call #1 and #2: Background of #1: -$210k 3/2 1,500 sq ft SFR on 6k lot -In older B- neighborhood (which is also improving) that is lower working class, clean -convenient access to highways, shopping -$40 HOA -Area seems to have lots of older homeowners, no houses are dumps or dead cars, etc -Rents for $1,150k -Taxes/Insurance $150 monthly Background of #2: -$220k 4-plex of 4 2/2 900 sq ft condos on C- property of 20 other 4-plexes. -Area has improved from D- a few decades ago but seems unlikely to improve in near future. -Low-income tenants, Grounds not well kept, units in fair condition and cleanliness outside. -convenient access to highways, shopping, primary school right across the street -$700 total for HOA for building, includes water, sewer, community pool -Units rent for $650 each -Taxes/insurance total $400 monthly -Would go with section-8 tenants if possible My thoughts are: the house is a better appreciation play but CF will be lower. 4-plex will have better CF but unlikely to appreciate due to neighborhood and other units. I can probably only pick up one property right now so there's the opportunity cost if I choose one and not the other. I appreciate anyone's general thoughts, concerns, or questions!