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Updated almost 8 years ago on . Most recent reply

User Stats

706
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Joshua D.
  • Rental Property Investor
  • Pittsburgh, PA
171
Votes |
706
Posts

Single Family Homes VS Multifamily family/apartments

Joshua D.
  • Rental Property Investor
  • Pittsburgh, PA
Posted

So me and my wife currently have 8 units currently rented, 6 homes and a duplex. The question I have is I was watching Grant Cardone and he was saying to never rent single family homes but to sell homes and rent apartments. All my single family homes have a cap rate of 20%-50% and my duplex 50%. Does that still apply with my cap rates or ROI which is great too.

  • Joshua D.
  • Most Popular Reply

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    Andrew Johnson
    • Real Estate Investor
    • Encinitas, CA
    3,788
    Votes |
    3,286
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    Andrew Johnson
    • Real Estate Investor
    • Encinitas, CA
    Replied

    Joshua D. For what it's worth saying that you have 50% cap-rates but achieve them through mysterious sneaky ways doesn't exactly build credibility.

    But let's all close to our eyes and suspend our disbelief. The only relevant question is if your "sneaky ways" will translate to a commercial 5+ unit property.

    If you want to hide your "sneaky ways" that's your prerogative but let me ask you this: How are those of us that own commercial properties going to tell you if it's applicable?

    In essence you're asking "Can I use XYX strategy to achieve better than 50% cap rates on commercial properties?" Everyone has a goal of high rent and low expenses.

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