6 Unit vs 8 Unit vs 16 Unit In Orlando Area

[Luke Grogan]

Hey BP experts, I've got a question. If all else is relatively equal, which property type would you prefer: a six unit, one building apartment; an eight unit in two buildings; or 16 units in three buildings. The six and eight are 2br/1ba and the 16 units are 1br/1ba.

They are all about 5.5 caps and have potential to force appreciation and increase rents, roughly the same amount proportionately. The 16 unit is in a developing area and the other two are right inside trendy areas. I know that these are basically retail deals, so it’s more of a question of which type of building mix would would you go to.

My plan involves selling a few of my SFR and transitioning to small MF around Orlando or Jacksonville and I'm leaning towards one building type of places because I'm thinking one roof vs two or three may help for maintenance. Any thoughts here or opinions on small MF?