Which would be better for appreciation?

[Travis Fisher]

This is a super vague question but I got thinking about it today and thought I should get some insight.

We are selling one SFR which should give us enough for down payments on 3 new SFRs or a down payment on one fourplex plus maybe one more SFR if we're lucky. The fourplex option gives us more doors, but I was thinking about appreciation. It seems like the more separate properties you own, the higher appreciation you're likely to see. In that way SFRs would be the better option as far as gaining net worth. Multifamily would be easier on management and repairs. This mainly stems from conversations where "everyone's house has gone up $100K in value" whether they paid $180K for their house or $480K.

[Bill B.]

ROI &/or cash flow would be worse on more expensive houses but I would expect them to appreciate more (under jumbo mortgage limit where appreciation may be lower.) but I also think almost all houses will appreciate more than 4plexes. The 4 plexus are better cashflow play but who's your buyer 95% of the time?

I’ll give you a hint, it’s another investor who won’t be emotional about getting their kids in to that school, or love that yard/kitchen/whatever. They’ll want a deal, they will only see the negatives and cap rates are currently pretty compressed.