Correct Me If I'm Wrong - SF v. MF

[Terri David]

I am currently a SF investor; however, been hearing for years about the advantages of MF/apartments. I think I may finally understand why - based on my experience. Kinesthetic learner, hands-on experience teaches me, sometimes the hard way. Please correct me if I am wrong as I am about to jump ship to MF.

1) My SF properties often are empty at the same time - summer - because everyone is moving after the school year. Expensive. MF/apartments have vacancies throughout the year - more manageable.

2) SF properties are more likely to have kiddos, teenagers in particular, that are hard on houses. MF/apartments are smaller and tend to have smaller gatherings and less kiddos, easier on property.

3) I have to pay a realtor a month's rent to place a new tenant in a SF. Expensive. I would not have to do that in a MF/apartments because I would have an on-site manager. However, is on-site management more expensive than paying a realtor one month's rent and vacancy loss for about two months, per year?

3) The make-ready on a 1600 sq.ft middle class SF is much more expensive than a 1000 sq.ft apartment. Obvious. However, the profit I am making on SF ($300-$550 a month) could be made on each door of a MF/apartment complex. More profitable.

4) I chose middle-class SF homes, great area, great tenants - right? Well, there have been a few exceptional tenants; however, the middle class tenants will leave a house in a big mess too, which is more expensive to repair - and more frustrating. Tenant quality in middle class SF homes has NOT been the significant difference that I expected. I hired  a property manager thinking they could do a better job finding tenants - nope. Might as well do MF/apartments and clean up the mess that is less expensive.

Ok - where am I wrong? What am I missing? Where am I right? Thanks!