SFR or MFR in Midwest?

[Matt Everling]

I have recently read a few posts where other investors have stated that renters in the Midwest prefer to rent single family homes rather than a unit in a duplex, triplex, etc.

Is this valid?

[James Galla]

@Matt Everling,

I think that's true of many renters. After all, who wants some upstairs neighbor with cement shoes stomping around as they please?

Privacy comes at a premium, and you should look to your market rent to see how much more you can extract on a single family home against a multifamily and whether that premium beats the cost savings of a multifamily (e.g. capital expenditures).

For example, I have a single family, and in reviewing market rent, I noted that multifamily units and apartments often included utilities in their rent price whereas single family units didn't. The going rental rate was also higher for a single family home compared to a multifamily or apartment.