Difference between SFRs vs Apartments

7 Replies

I haven't heard much about renting out individual apartment units, so I was just wondering the reason behind that. What is the reason no one talks about renting out single apartment units as much as they do SFR or multi units?

@Martin Vehlow No, my question is why do more people lean more towards buying SFRs and renting/leasing them out rather than buying apartment units and renting/leasing them out? I hear a lot about buying a house and leasing/renting it to a tenant, but i don't hear a lot of people doing the same with apartment units. I'm curious as to why.

Hmm, there are definitely people doing multifamily (apartments). There are lots of people here with different preferences (SFR, multifamily (2-4 unit), multifamily (5+ units), land, short-term rentals, mobile home parks, & commercial.

Here's a little more info:

https://www.biggerpockets.com/forums/48/topics/519994-what-should-i-focus-on-sfr-vs-mfr

https://www.biggerpockets.com/forums/12/topics/600764-starting-with-sfr-vs-small-multifamily-vs-small-commercial

I'm sure there are many more threads discussing the differences but hopefully this gives you some insight!
  

@Kayla Holbert ,

I think it really depends on your location and size of investor. For example, somewhere like NYC apartments are really the only option for most investors. We have small apartment houses 2-3 family buildings or larger apartment buildings in which most people reside. There aren't a lot of SFR's except in the outer areas of the city and those tend to be more owner occupied and financially incompatible with cash flow based upon their pricing.

In most areas of the country due to density and urban sprawl, single family homes are the main living arrangement. Apartment buildings in these areas tend to be larger complexes which lend themselves to larger developers. Not saying there aren't large developers on Bigger Pockets, but I believe a majority on here are small to midsize based upon my general observations.

These are just to name a few of the many contributing factors. There are many ways to look at the issue. Think, Cities vs suburbia or public transport vs. the automobile. They all play their part.

Alex Furini, RA

People rent out condos... That's probably what you're thinking of. 

Normally apartments are owned by one person or group and aren't sold individually to then be rented individually.