Apartments or Single Family if same cap rate?

[Bruce L.]

So, I've been looking at a 10 unit apartment complex and comparing it with Single Family Residence. When I did the rough numbers on the complex& the SFR, both had the same cap rates.

The apartment has 10 units, so my question to you guys is would you rather buy the apartment with 10 units or one single family if both cap rates are the same? Would you mine explaining to me why?

The Apartment is $400K, and the SFR is $100K

Thanks.

[Will Barnard]

If these are both in Las Vegas, I would suggest the SFR route and here is why: with cap rates being equal, the upside on the sfr's are greater than the apartment simply because of the current environment. With SFR'S at only 50% (or slightly higher) than the cost to build and with the current things going on in the market, values of SFR'S will be going up at a clip higher than the upside of apartment units which can only increase by capital improvements, rent increases (which are likely going down not up), and decreased operating costs which increase cap rates but only