Are the 4 quads being purchased in one deal? A small benefit could be the quads being purchased with traditional residential lending where as the 16 unit would require commercial lending.
If the 16 unit complex is cash flowing the same as the 16 units comprised of quads, but the 16 unit apartment complex is half the cost, it sounds like the half cost option is far better. What is the respective cap rate for each property?
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
@Bryan Noth The quads offer more flexibility but there is nothing better than having all your tenants under one roof. Ease of management and maintenance, lower costs of capex. It may take longer to sell the 16 unit although in my area they are flying off the shelf. You can't really go wrong either way; but you will make more money with the 16 unit.
Investor · Smyrna, GA · Member since 2016 · 58 posts · 16 votes
2y
In my experience you will have a hard time basing the value on just the income with the 4-unit and the 16 unit's value will be based soley on the income. So the 16 unit would seem like a better option if there is plenty of room to add value.