Difference between SFRs vs Apartments

[Kayla Holbert]

I haven't heard much about renting out individual apartment units, so I was just wondering the reason behind that. What is the reason no one talks about renting out single apartment units as much as they do SFR or multi units?

[Alex Furini]

@Kayla Holbert,

I think it really depends on your location and size of investor. For example, somewhere like NYC apartments are really the only option for most investors. We have small apartment houses 2-3 family buildings or larger apartment buildings in which most people reside. There aren't a lot of SFR's except in the outer areas of the city and those tend to be more owner occupied and financially incompatible with cash flow based upon their pricing.

In most areas of the country due to density and urban sprawl, single family homes are the main living arrangement. Apartment buildings in these areas tend to be larger complexes which lend themselves to larger developers. Not saying there aren't large developers on Bigger Pockets, but I believe a majority on here are small to midsize based upon my general observations.

These are just to name a few of the many contributing factors. There are many ways to look at the issue. Think, Cities vs suburbia or public transport vs. the automobile. They all play their part.

Alex Furini, RA