60k for a 5plex or 100k for a 3plex? Both have pros and cons.
5plex: 60k selling price, tax value is 95k, market value is 120k. Private sale. This is in a dieing town which I feel would make this building a high vacancy rate, but if I can keep this place full I see a quick return on investment and nice equity. Also feel it would be a difficult building to sell in the future due to the town. Very small town. Not much going for it and most of the jobs are outside of this town.
3plex: 100k asking price, tax value 110k, market value 120k. In a busy area. Lots of jobs around this area. Right on main street. Great location. Building is in the same condition as the 5plex. More money and less units but the vacancy rate should be a lot better. I feel there wouldn't be a problem filling a unit when a tenant leaves. But almost 3x the price per door as the 5plex...
Which would be the wisest choice? They say you make your money at the time of sale on regards to what you paid for a property but does location outweigh the price on this? Both buildings will bring in roughly the same annual income. 5plex has cheaper rents and more expenses, 3plex has slightly more rent per month and slightly less expenses.