SFH vs. Multi in Houston
I am an American/Houstonian, currently living overseas. I have $300K cash to invest in properties. My Plan A has always been to buy as many SFH as I can, and then let a PM manage them for me. I'm a buy & hold kind of guy, so I love cash flows.
I bought 2 SFH this winter. However, since Jan, I've been unable to secure a contract at a reasonable price. Everything seems to be selling at blazing speed at very high price compared to last fall. So now I'm beginning to consider multis and small apartments too, even though these also present their own issues.
I have a few options:
Option A: continue buying SFH. Cap rate is about 7-8% Con: hard to get good deals, long & cumbersome process to buy several SFH.
Option B: buy a 20-25 unit apartment for around $1M, cap ~10%. Con: low property quality no/or in bad neighborhood.
Option C: I expect to sell another property this summer which will give me additional $300K to invest in. So option C is to wait a few months and buy a larger 40-50 unit apt for around $2M, cap ~9%. Con: the wait. And I'll be putting all my beans in the same basket, practically.
What should I do?
Or Option D?