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Updated almost 5 years ago,
Should I buy a triplex close by, or a fourplex further away?
I live in a small town and currently rent, so commuting to work is only a 5 minute drive, and everything is really close by (walmart within 5 minute drive). I can finally buy my first house and would like it to be a multi-family property with an FHA loan. In my small town, there are a couple triplexes available. Real estate is pricey in my area. They're listed for about 400k, but RE agent said we could offer around 360k and be competitive. Rents are about $925-950 per month in my area for those types of units (2 bedroom).
There's a fourplex for sale that is probably within a 45 minute drive on a good day. Rents might be a little higher because it's closer to a bigger town, but mostly they're about the same. The fourplex has 3 two-bedroom units and 1 three-bedroom unit, so it could get a little more from rent with the 3 bedroom unit (maybe $1100). It's listed at 515k, but could probably offer something like 460k-480k.
What do you guys think? I guess the pricing is about the same per unit, but with a fourplex I'd get more units overall, and one of the units will be bigger (a 3 bed), so I could get a bit more rent. Or should I just go for the triplex and not have to commute so far?