apartments vs house better investment discuss

3 Replies

having trouble decide weather to invest in an apartment or a house.

apartments are cheaper but will have to pay management fee and the property price will not rise much i am led to believe.

house are more expensive and require more work running them however have the potential to rise in value 

thoughts please?

I was just discussing this with my parents last night since we are both looking for some more properties.  Around here (semi rural DFW TX) small multis (4-8 units) are going for about the same or a bit more per unit as a nice doublewide on an acre of land.  The apartments are renting for about $500 to $600 while we can get $850 to $1000 for the doublewides.  We also feel that we get a better more stable tenant base than we would with apartments.  I do like the idea of having more units in one place though instead of scattered out.  This is one reason we are also looking at some places on larger lots where we could possible put another one or two homes while still keeping fairly big sub lots for each home.

Apartments have greater potential to rise in value than houses. Moreover, that value rise has less to do with the market and more with management efficiencies. You as an apartment owner can increase the value by increasing rents and reducing expenses while the same would not change a value of a house.

Both have their advantages.

Apartments are a lot more expensive then homes so the barrier to entry is higher but they are easier to finance than homes.

Homes are easier to sell as you have a much wider buyer pool and the barrier to entry is much lower.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | Podcast Guest on Show #127

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