Pros/cons of one-story versus Two or three story multi-family building
Hi, First, a big thank you to this community - I'm just starting off as an investor and manager in the commercial MF space and have learned so much from you.  I hope to contribute more in the future as I learn. 

I'm trying to decide between buying one of two 10-unit apartment buildings in the San Francisco Bay Area.  The first is a single story that has 2 buildings, each with 5 units (built in 1930).  The second is a 3-story (built in 1920).  The 3-story building has a slightly higher cap rate.

Both properties have been remodeled throughout the years, although I am confirming what work has been done to the foundations.  

Are there noteworthy differences in repair and maintenance costs that I should keep in mind when deciding between the two properties?  Some things that come to mind - I'll need scaffolding to paint the 3-story, whereas the one-story may cost more when I eventually need to replace the roof(s).  
Thank you!!!
[{"id": "gtpgkjh", "text": "Have the multi-story been seismic-retrofitted? \n\nWhats the long term play? could you re-develop the single story into multi?", "replies": [{"id": "gtpinl8", "text": "My long term play is to hold for 25+ years and produce income off the properties.\n\nI don't believe the multi-story has been retrofitted.  It survived the Loma Prieta earthquake years ago without much damage, but the epicenter was nearly 60 miles away.\n\nBoth of these properties 5-10 miles from the Hayward fault.  Both on fairly flat grade.\n\nI won't be able to redevelop the single story into multi very easily.", "replies": [{"id": "gtpioob", "text": "60 miles is 96.56 km", "replies": [], "depth": 3}, {"id": "gtpj9hj", "text": "I would just verify that you won't be required to retrofit in the next 5-10 years on current rules for the multi-story.", "replies": [{"id": "gtpldj8", "text": "Great point.  How do I do that?  I'm guessing my agent will give me the shoulder shrug if I ask her.  Is this a question for the county building inspection department?", "replies": [{"id": "gtplwgn", "text": "That's where I would look first.\n\n&amp;#x200B;\n\nI don't expect your agent to know, but I expect them to know who to contact.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "gtpmtaw", "text": "Have you actually owned any real estate for 25 years? Honestly I doubt you\u2019ll hold that long. Adjust accordingly", "replies": [{"id": "gtprp2f", "text": "I have several other smaller rentals that I've owned for 12-15 years.  The cash flow is great (and appreciation).  I don't plan on selling them.", "replies": [{"id": "gtq2cxn", "text": "I stand corrected!!!", "replies": [{"id": "gtqg9p9", "text": "I sit corrected!!!", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gtpl2g0", "text": "My rule of thumb is typically the less roofs the better. Also less HVAC systems potentially in one building vs two. On the flip side does the three story have an elevator? Does one have patios that need upkeep? Can you get more rent from the upper floor?", "replies": [{"id": "gtps2hs", "text": "Thank you.  The 3 story doesn't have an elevator and neither building really has patios - just concrete steps to the doors.  I'm close to market rent on the upper floor of the 3 unit.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gtpoa4g", "text": "Have you factored in the eviction moratoriums?", "replies": [{"id": "gtps6gc", "text": "Good point.  The quality of the existing tenants is similar.  And I plan to be very picky about who I rent to in the future.", "replies": [{"id": "gubp4i4", "text": "be careful with this...especially with fair housing laws and liberal policymakers. Right now, tenants have much more protection than landlords. I don't see it changing in the near future. May only get worse.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gtpuwi9", "text": "only people who hate spending time with their families self-manage apartments. many people self-manage or have to self-manage, because they overpaid for the property. I highly recommend being disciplined, buy the dirt for the right price and hire a full time property management company.", "replies": [], "depth": 1}, {"id": "gtqg6oo", "text": "*\"I'm trying to decide between buying one of two 10-unit apartment  buildings in the San Francisco Bay Area.  The first is a single story  that has 2 buildings, each with 5 units (built in 1930).  The second is a  3-story (built in 1920).  The 3-story building has a slightly higher  cap rate.\"*\n\nOf the two options (since your *stated* goal is rental income) my preference would be the one that throws off the most free cash flow.", "replies": [], "depth": 1}, {"id": "gtt1k4a", "text": "What is the land size of each? Are the neighbourhoods the same? \n\nOne storey is a lot easier to maintain in general but multi storey usually means higher density and potentially higher appreciation.", "replies": [], "depth": 1}, {"id": "gtwkbxl", "text": "SF is 100% a cap rate market (often times with negative margin towards debt). If you have a tenant paying less than $1,000/mo, they will never leave no matter how much you offer them. Rent control laws will leave you with virtually zero investment alternatives outside of assuming it\u2019s bond investment. Low rise to high rise won\u2019t make a difference because majority of SF RE is owned by family trusts of multi generations who sink their money in the dirt for many future generations. Prolong your investment horizon well beyond 25 years and you will have a top tier commodity for your children and grandchildren; not you.", "replies": [{"id": "gtwkxvo", "text": "Also, I do not mean to come off negative. To directly answer your question, 1-3 floors is still low rise and will have immaterial maintenance costs with regards to height. One thing to keep in mind is proximity to the ocean. Closer to the water requires much more maintenance than further inland. Richmond district properties require most metal exterior components replaced every few years. This includes all siding and roof nails to wood exterior components. Comparatively, SOMA and South SF can prolong those capex timeframes.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gtydee0", "text": "What\u2019s the construction type? Sprinklers? Units per building? Really can\u2019t say which is better with the limited info you\u2019ve given. Both have pros and cons.", "replies": [], "depth": 1}, {"id": "gubon98", "text": "my concern with a 2 or 3 story building in San Francisco is the earthquakes and necessary retrofitting. The other concern with multi-story buildings is the risk of plumbing problems affecting downstairs neighbors. This is an issue sometimes even in newly built properties.", "replies": [], "depth": 1}]