MFRS in cash flow markets for a hands off investor

[Gary Dezoysa]

I notice duplexes are maybe 1/3 more expensive than SFRs in Toledo but generate 75% more rent. Seems like a good deal. Primary downside appears to be less inventory though still not bad.

I hear tenant quality is a step down though. In markets that are already low cost I wonder if I may be getting myself and my PM into a headache by buying in a B area but actually getting C tenants. What do you guys think, are they trouble for out of area owners? Or still a pretty good option?

PS: I am also considering Cleveland and Memphis

[Bryan Mitchell]

@Gary Dezoysa, pay close attention to the average stay of each tenant. I’ve found that certain units in certain parts of town have more turnover. This was a major source of frustration due to the high turnover costs. I have several small family homes outside of town that keep tenants for many years. Despite the lower rents, they cash flow nicely due in large part to very low turnover.