SFR or MF in Beloit and Janesville - Which has better cashflow?

[Jeff Stansberry]

Hi All,

I'm an out of state investor looking into the Beloit / Janesville areas. I'm seeing on the MLS single family homes for around 60k that will rent for $1,200 which is a great return. However, I was surprised to see MF such as 2-4 units listing around mid to high 100k.

In your experience are the multi family or single families seeing a better CoC return? Especially interested in the BRRRR strategy and cashflow would need to be high to make it worth it after refinancing.

Thank you!

[Chris Heeren]

FYI - The $60K houses in Beloit/Janesville do not rent out for $1,200 per month. I'm guessing you may have talked to an agent who is prevalent on here promoting those types of deals. I have about 75 rentals myself in this area and the typical 3 Bed 1 Bath house for $60K will rent out for around $900/mo.