Best rentals duplex, apartments or townhomes

[Jeff Efird Jr]

What's the biggest bang for your buck? Townhomes, duplex, or apartment rentals. I'm a contractor and looking to build to rent. Just getting a few ideas on which route to go. Thanks

[Michael Lee]

Hello Jeff! The answers to your question are meant to inform you and not to be taken as a personal attack. The more units you can control is the best way to go. Apartments are #1 right now in this economy. Rental of a SFH is not as profitable and needs too many addresses. They depend on the actual demand that exist. The main reasons I do not like is the involvement of a HOA and many of them are built like well-fished apartments. Their location is more important than houses.

The biggest problem with house rentals is that there are not enough units at one place and they usually costs more than you think to turn them over for a new resident.  You would be better off by offering "Lease Options" on houses and deal with the people who have been turned down trying to finance through a Bank and do not know there are alternatives that do exist and they are people who can pay and you can trust.

Do not forget that the location has differing degrees of importance and the demand for each type that makes them a possible profiter.  Also, there are other important things to look at like economic diversity, direction of job growth, the population growth, and job growth to name some of the main reasons.  I hope that some of this helps you in which direction to go.

Best of luck to you!