Specialist · Ann Arbor, MI · Member since 2016 · 356 posts · 191 votes
For those of you with long-term experience in the hot markets where housing prices jumped considerably higher than rents, have you found that the long-term resale price of small multi-families was lower, being tied to the rents? And that the appreciation of SFH far outstripped the small multis?
Yes, if it is a predominantly owner-occupied neighborhood. We've just had a couple perfectly serviceable duplexes torn down where I live in Atlanta because it was way more profitable to rebuild as SFR. Exactly the situation you are describing.
If you own SFR in a neighborhood that transitions from being predominantly rentals to predominantly owner-occupied you can get a step change in valuation. If you own a 2-4 you'll get some benefit but not as much.