Homes Or Apt Buildings
Im new to investing, which would be better, to buy several homes, or a small apartment building ? It looks to me as though homes may provide a better monthly return. But it seems small aprtment buildings would be easier to manage. thanks to all
Personally, I think it's just the opposite:
apartments have a greater return, more management; houses (unless you're planning to flip 'em) have a smaller return, less management. But then, that's just me.
Multi-families typically have better cash flow but less appreciation over the long term (depending on the market of course). If you hit with a SFH in a depressed area that turns into the next "must live in" area then you've gotten the rental cash flow and the chance to really cash in on the appreciation.
Q
Buy whatever you can find the better deal on. Both are good when you walk into the equity. My personal preference is called equity in any shape or form.
Things to consider:
economy of scales
Exit strategies
Management time
Management expenses
Types of sellers
purchasing strategies
Cashflow
Cap rates
This topic has been brought up numerous times. Browse the forums and you'll find some lenghy posts on this topic.