Apartments affect SFR value?

[Darrel Plank]

Hi y'all, my wife and I are looking into buying a house and turning our existing home into a rental. My dilemma is the market we are looking to move into is extremely hot. Houses are selling at or even a little over asking. We found a house off market that we could buy, put about 10k into it, then create about 10k worth of equity. The market we are looking into has glut of apartments and and the reports I got is they are about 80% filled or less. The question I have is if/how does having excess apartment buildings affect SFR prices? There is excess apartments right now and they keep building more. I know a lot of the SFR people don't want an apartment but if rental prices drop enough to fill the apartments, that has to affect the SFR price right? We only plan on having this house 4-5 years and I don't want to lose money on it is why I ask. Thanks for the input!