2 investment options: 8 SFH vs 4 duplexes

[Josh Buchanan]

I am evaluating 2 long term rental purchase options. One is in a growing market(Triad, NC) 8 single family homes 60-90k value each, priced 15-20% below market value. Rents are below market, older homes, decent areas, will need updating to increase to market rent. 2nd option is 4 duplexes in a small town(pop 2000) in northern WI. I have one rental there already. These units are mostly updated, renting at market values, so the immediate cash flow is much stronger($1100 vs $600), but they are priced at 90-95% of value & do not have the appreciation potential of the larger market. I feel like the growing market is the better play, but since they are long term buy and holds am I putting too much emphasis on appreciation. Let's assume financing costs are similar, here is an overview. Thoughts on these 2 options are appreciated. 

	Price	Value	Current rent	Max rent	Current cash flow	Potential cash flow	Improvements
NC properties	450000	550000	4865	6250	600	1600	50-75k
WI properties	400000	450000	5300	5600	1100	1300	10-15k