Apartment Unit vs. Single Family Home
BP Community:
I am a new real estate investor seeking to purchase my first investment property. I am in need of advice of wheather to purchase a single family home or a single apartment unit.
To provide you with a little background on the apartment unit property I am viewing here are the numbers:
4 bed 4 bath in a college town
93% occupied/filled rate over past 3 years
Asking price: $85,000
Down payment: $17,000+(2-3% closing cost)
Mortgage payment: $443 with mortgage, property taxes, and insurance (assumption 4.25% interest rate)
Monthly Rent per tenant: $350
Monthly HOA Fee: $250
Monthly profit: ~$700+
One of the factors that is holding me from the deal is the following:
1.) greater appreciation if I was to buy a single family home vs the risk that additional apartment complexes are built in the college town
What are your thoughts experienced real estate investors? Thank you in advanced.