Mother-in-law quarters

[Sam Leon]

I know it's been discussed many times previously on buying SFR vs MF for rental.

Obviously part of it depends on whether your objective is cash flow, or an appreciation play or both etc...

No question SFR is a more flexible exit strategy as your potential buyers would not be limited to other investors.

So I am curious where would an "in-between" fit in this picture?

By that I mean a lot with 2 buildings. A main SFR may be a 3/2, with another separate building which may have say two smaller apartments which is typically referred as mother-in-law quarters.

Are these types of properties, more or less attractive in terms of an exit strategy?

More attractive because it will be appealing to *SOME* SFR buyers who might occupy it and be able to derive additional income from it where a standard 3 or 4-plex would not.

Less attractive because it will turn off many investors because they will want to standard building with identical units since it's less maintenance (under one roof).

I am trying to debate whether I should stay with SFR or real MF, or consider some of these in-betweens?

Thoughts?