Which is the best investment for your hard-earned dollars, multifamily properties or single-family properties?
Advantages Of Single-Family Properties For the purpose of this article, single-family means one unit owned and one tenant (or family) living in the unit.
• Less maintenance: Apartment tenants tend to be are much harsher on the property than those that live in houses.
Finally, with single-family homes, it is common to have several owner occupants in the complex, or neighborhood, who care about and take care of the property more than a building full of renters.
However, I also owned homes in other areas that did not take a price hit at all.
To some investors, this is the biggest advantage.
• Easier to manage: This is not always the case — fighting tenants is a good example of when it is not — but overall, having everyone in one location makes managing multiple units easier.
Your marketing for new tenants or insurance expense are two other examples of economies of scale, and a lower price per unit with multifamily investments.
A downside to single-family financing is that banks want to limit how many loans you have, which limits the number of rentals you can buy.
If you believe real estate is a great investment, you could probably see benefits from both multifamily and single-family investments.