Now this is all comparing a one bedroom multi to larger numbers of bedrooms in a single family.

You can deduct the expense, yes, but that is hardly, IMO, a "phenomenal advantage" as mentioned above ;) at least if you compare it to having an employer cover half of the expense or more.I have never had a job with benefits, and health insurance remains my single largest monthly expenditure.

If you think they're expensive, compare the price to a single course at a university or any sort of computer certification course.Jon

An appraiser looks in the MLS and public records and finds a few comparable properties.

The comparable sales I also found are in that general area too.

I personally like ROI over comparing cap rates because ROI factors my financing into the equation, and my financing options might be different on different properties.

* How does the stock market compare to real estate?

Plus books are cheap compared to a lot of these seminars and clinics...

Purchasing multi-family units are excellent investment choices (in my opinion , the best right now), particularly new constuction as they come with builder warranties (little or no maintenance costs for 1-2 years), they will have greater future appreciation (compared with older units), and they will be easier to sell when the market turns to an upswing.As others have mentioned, due your homework (due diligence) and most importantly, run the numbers to make sure the deal makes sense.

Well, I guess not that complex compared to buying and renting out houses, but still not easy.