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Updated almost 14 years ago,
Assuming same cost per door, same rent: SFHs or small MFs?
Let's say you have a choice between two $35,000 SFHs in a primarily OO neighborhood or one $70,000 duplex in a primarily rental neighborhood -- assume further they're 100% comparable in terms of location, quality of tenants, etc.
For some reason, I've always liked the idea of small MFs. I like that you can take care of two, three, or four doors in one visit. I also like that you need to get only one loan to finance all those doors.
However, I'm thinking I may need to shift my thinking, because I think there's probably more upside on the asset value with a collection of SFHs. There's certainly a bigger buyer universe, should I ever want to sell.
I am seeing a lot of nice little houses in stable neighborhoods going for $35K that should rent for $650 to $675 a month -- and I'm intrigued.
What say you, BP Community?