Buy a fourplex, 2 duplexes or 4 single family homes?
I'm looking to capitalize on a high-growth area by buying some properties. I have multiple choices and would like your help in deciding which to go after. I have only invested in SFH so far, so your advice on the differences in rents, maintenance costs etc will be appreciated.
4 Single Family Homes
Average price for a 3BR with garage will cost around $150-$170k.
Will rent for ~$1300 each.
A comfortable option that I know will give solid returns. I will need to get higher rate investment loans on 3/4 of the properties.
Fourplex, new construction
Will cost ~600k for a 4 unit where each unit has 3BR and a garage.
I imagine rents will be lower, possible higher turnover?
Big benefit in that I can owner-occupy and lock down a low interest rate for the entire building.
Possible upside in less maintenance on new construction, possible downside if construction is cheaply made.
2 Duplexes
Can be had for roughly $300k each.
No experience on this, but gut feeling is that 2 units will be easier to sell in the future, and command higher rents.
Seems like the worst option of the three.
Your thoughts?