Correlation Between House Values to Apartment Building Rents?

[Mehran K.]

Hi Everyone,

Since I am fairly new I have not had the opportunity to see how SFH value increases affect the market rent they command. And does this in turn increase the market rent of Apartment building units?

I ask because:
SFH Prices are on the rise and they are appraised based on sales comps.
And Commercial properties (5+ Units) are valued based on cap rate.
I am trying to understand the correlation between the two

So:
I am wondering if I should get some SFRs soon before the values go up further
or is it smart to buy a small apartment (5-10 Units) if it will(not sure yet?) appreciate also due to the Single family home prices rising (hedge-fund activity etc.)

Any input would be greatly appreciated. Thanks in advance!