Updated about 12 years ago on . Most recent reply
Standalone structures versus N-plex
What is the general feeling on standalone structures on a single lot for buy & hold & rent?
For example, a single lot with three "cottages" where one of them have two units, the others are all single unit cottages, for a total of four units.
Versus a single building four plex?
Obviously there is more to maintain (three roofs instead of one, more exterior and interior wall surfaces for painting, cleaning, more soffit vents, more piping, more of something to go wrong), and also the maintenance is non-standard, as each cottage has it's own unique plumbing, electrical, AC, ducting, sewers, water supplies...versus in a standard 4-plex all the units have "similar" layout and the issues are more predictable and less challenging.
These cottages are not on a very large lot that can be subdivided in the future.
Would you ever consider buying multiple stand alone structures like this if there is no price advantage versus a 4-plex on a per door basis?
At first I thought may be it would command more rent because the tenants do not have to share a common wall - more privacy, but the rent history says otherwise. Probably if you want privacy you just go rent a SFH and not one within a cluster of cottages.
Opinions?