Multi-family not cheap in cheaper market?

1

I checked multi family pricing in different markets. It strikes me that pricing difference between BA and other lower cost area is much smaller than single family differences.

Am my impression correct?

One example, even this Reno triplex is selling for 1.1M.

Also multi family pricing between Sunnyvale and Sacramento is much smaller than single family.

Maybe the best multi family bargains is in BA. Maybe multi family is priced based on rent, and single family is priced based on non-economic factors, more accurately non-cash flow and non-rental yield factors.

https://www.redfin.com/NV/Reno/40-Park-St-89502/unit-325/home/148130799?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

2

Golly that thing is ugly…$300/sqft for new construction.

Asking 17x gross rent and won’t appreciate. What a rip.

3

Reno prices have gone crazy. Better deals in South Lake Tahoe.

4

Blame Bay Area cash. I still somewhat follow the sac market and the agents are all telling me that there is an exodus of local money (and even from so cal) that is chasing yields and driving the price up in sac and related regions

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