FWIW: Here’s some data from wifey and I’s admittedly small sampling:
- We have seen our multiplex appreciate on paper (who knows till you sell) based on comps only slightly slower then a SFH
- We have good tenants in our multiplexes because of our locations and rents. I actually don’t see a difference between them and the tenants in my North San Jose TH. In both cases the tenants are far less headache them my multi-fam in Sacramento.
- you can purchase more units with multi-fam for the same dollar then going the condo route and the rents are not that much different between a condo and a 2br/1ba multi-fam
- You don’t have a HOA. as pointed out above, HOAs can shut down rentals real easy and tank your resale value. I have friends in condos in Cupertino who are stuck. HOA does not permit a new rental unless an existing unit stops renting. The inability to rent puts a negative price on their property
some additional commentary. I seriously believe housing stock moves together and stuff reverts to mean over the long arc. It’s not sustainable to maintain the kind of appreciation we have seen in SFH. You are going to get short bursts of appreciation, but a rising ride lifts all boats. Multiplexes are already discounted relative to SFH, but their % gains have been in lock step, so while it may feel like multiplexes are not appreciating as much in $ terms, if you look at how much you invest and what you get out of it, I believe the appreciation is there. The cherry on the top is cashflow. That said, I am fine if none of you buy multiplexes, there’s enough crazy bidding going on as is and we don’t need more competition