Question for you all: Appreciation on tri/four plexes
Hi all
I am trying to purchase my first rental; I was pretty decided on SFR but recently found out I can get a better rate if I consider more units.
I am very familiar with the market here in Texas for SFR, but how do duplexes, tri-plexes, and quadraplex appreciate in comparison to SFR? If you were a first time investor, would you stick to SFR OR more units?
Any added advice?
Most Popular Reply
2-4 unit real estate appreciates slower than SFR.
Emotions are a component that can drive sales prices up. The emotional buyers do not want to share walls or deal with tenants, they want a big single family home to nest and make babies in.
The dial between cashflow and appreciation is always there, it never goes away, and it has no exceptions. 2-4 unit means the dial is turned a tad more towards cashflow, a tad away from appreciation.