Your real estate happens to be a % of the larger piece. 

We are considering building a small multifamily a couple duplexs, a tri or quad in a small suburb of a larger city (ie Nashville, Knoxville, Atlanta, Ashville). 

Quote from @Chris Seveney: Quote from @Devin James: In 2021, we saw buyers upgrading to larger homes, taking advantage of 3% interest rates to afford an extra 300+ square feet.Today, smaller homes are selling much faster as higher rates make additional square footage less affordable.While rates are historically average, I don’t see them dropping significantly.

Congratulationswhat you’ve found that both the INVESTMENT side of real estate, and theBUSINESS side are very competitive; therefore profit margins are compressed, so those “home runs” people like to bragg about are actually quite rare.  

(larger would require fire sprinklers). 

Looks better for them and gaining a sale and higher property value gives a larger commission. 

Investment Info:
Small multi-family (2-4 units) buy & hold investment in Sloan Lake, Denver.

Purchase price: $839,000

Cash invested: $83,900

Bought an up/down duplex 4 blocks south of Sloan Lak...

A house that's similar, but 10% larger than another usually isn't worth 10% more.

This year is slower than normal because mortgage rates and home prices are so high.

There are new construction homes about 2-3 miles away going for 190-200,000 but I think they may be a bit larger than what I am building.