A 10% increase in rents could easily equate to a 15-20% increase in NOI at that scale, which equates to a 15-20% increase in value (at a constant cap rate);- It's difficult to park tens of millions of dollars someplace that will earn much greater than 7% passive returns, and it's REALLY difficult to park tens of millions of dollars someplace that will return 7% with a very real chance at appreciation.

I have worked with developers wanting to purchase land and build 250 to 350 units over 3 years broken into 3 phases of construction.Projects of that scale are about supply and demand and timing the market.What is your goal with building the 4 unit??

So why not break the profit down with him and show him he can make money at 12%.For the first deal, if he has cash, he should use cash and not try to scale his business.

Sold less than a year later (by a few weeks) for $1.5 mil which was list price.I have not since done a project with such a high cost and need for "luxury" but that was my best deal because it was a huge risk that paid off in the end and gave me the confidence to scale up my business and career with the proceeds earned.

I believe the best reason is economies of scale which is incorporated into several aspects of aprtment buildings such as:Management, repairs/maintenance, loan (one loan, multiple doors), utilities, etc.Also, if you lose 3 tenants in a 50 unit building, you just lost only 6% of your tenants, if you lose just one in an SFR, you are 100% vacant.The second best reason is forced appreciation.

I don't think anyone is going to have good data to prove anything on a national scale.

However, they also have economies of scale where SFR's do not.

Although a 10 unit seems large, it is very small on a commercial scale.

I would agree that they have a lot of advantages, but they also don't come with the economies of scale that an apartment offers.

It's NOT the medium it's the marketing message.You can take the right copy and message and scale it on multiple mediums and it will pull great.You can put bad to mediocre copy in any medium and it will struggle to pull well.Design of the website doesn't mean what people think.I have seen many websites rich for SEO rake in the leads and they are nothing fancy to look at.Website designers don't know much about driving business and just like to create vanity sites to admire their work.I can't remember but aren't you trying to buy properties for 50 bucks down??