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Updated over 8 years ago,
SFR in A area or Multifamily in B or C area?
I'm basically wondering--in general--if there's a general preference in terms of real estate investing towards investing in an SFR in an A area or a multi-family (duplex or triplex) in a B or C area? Is there a rule of thumb?
I know there are a lot of conditions unique to every situation. The cost per door would be lower with a multi-family, but the SFR in a nice area might attract a longer-occupancy tenant. The multifamily in the B or C area would likely attract a more risky tenant than the SFR who might damage the unit more than an A tenant. Therefore, the overall turnover costs with the SFR might be lower, right?
Obviously, there are many other conditions, but I'd love to see if you have any general rules of thumb.