Apartment or single family home - better first time investment?

Question

Hello! I'm currently 17 years old, and I'm planning on purchasing a rental property sometime in college. To anyone who's invested in rental properties before, what would you say is the better investment for someone starting out in general?

I'm enticed by the lower entry price of apartments, but I've heard here that apartments aren't as good of an investment as single family homes. Is this true?

Thank you!

Stephanie Corean · Answer

Hey Derek!

I am a disposition agent for an investment brokerage. My husband and I are starting out with four-unit properties. Our research shows that it's a greater return in monthly income. However, multi-unit properties come at a higher price tag and a lot to think about as far as managing tenants, the units, etc. So a single family home may not be a bad idea for just starting out to get your toes wet :)

Nathan Gesner · Answer

I think the ideal option would be to purchase a four-unit property. This could give you more rentals, more income, more experience.

Derek Cossettini · Answer

@Stephanie Corean I see, that makes sense! I defenitely agree, I would love to have a multi-unit property if I can afford it. Although, you're right about the extra management it comes with. It's a big descision, so at this point, I'm going to keep saving money and make a move when the time comes. Luckily, I'll have some time to think about it while I'm accumulating money. Thank you for the advice!

Derek Cossettini · Answer

@Nathan G. Got it! Thanks for the advice, I really appreciate it!

Apartment or single family home - better first time investment?

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