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Updated over 4 years ago,
comparing multi vs. single family rentals
Dear Members,
I am struggling to do an apples to apples comparison of buying a multi vs. a sf. It should be simple but for some reason it is evading me. Looking for your input. Backstory (more or less), I have 4 sf's that I bought for about $120000 each (give or take.) They all meet the 1% rule (give or take.) My payments are about $700 and rent is $1195 so they each cash flow, after expenses about $200 a month. I think to compare we need to assume I'm buying the properties conventionally at 20% down on a 30 year fixed.
I'd now like to move into buying a few multi families. But when I look at the numbers I can't decide if it is a better deal to continue with my Sf's or if some of the multi's are better. For example, I'm currently looking at a multi 4-plex that is $250000. Rents bring in $2575. My monthly payment would be about $1325 (plus water for a 4plex-not sure how much.) So monthly (before expenses like saving for vacancies and repairs etc..) I'd bring in $1250 a month. How does this compare to what I bring in for the Sf's? Do I look at the numbers separately for example, per unit I paid $62500 and then if I add 2 units together that is about what one sf would cost me so I can compare those numbers??
Basically am I better off sticking with using my money to buy more sf's like I already have or is the above multi family a "better" deal per say?? Help!!!!