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.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here