House Hacking a Single-Family Home or Multi-family?

Question

Hi all,

I'm currently looking to get into the real estate investing game. I've heard the pros and cons of both a single-family home and a multi-family home. One of the major pros for a SF was that it tends to be easier to handle and it appreciates in value more than a MF would.

I wanted to see what would you all do if you were in my shoes? I'm looking to use the VA home loan. SF is winning me over at the moment because I'm a beginner, but I'm sort of stuck in analysis paralysis right now trying to decide.

Thanks in advance!

Nick

Lindsey Mannix · Answer

Hi Nick,

Thank you for your service! If I was you and I had access to the VA benefits, I would see a 4 unit property where I'd have my own space and then rent the other 3 units. This will likely produce larger financial rents back to you as well verses renting out rooms in a SF home.

Best of luck!

~ Lindsey

Simon Ashbaugh · Answer

Hey Nichlolas, it all boils down to your risk tolerance and what your main goal is. A single-family home can definitely be easier to manage upfront. But as others have already mentioned, with a multi-family, the potential to scale faster is there especially for long-term investing.

Joe Morello · Answer

If you're looking to invest long term and build a portfolio, I'd recommend going with a 2-4 unit and take advantage of the VA financing. You could always lean on a local real estate agent to handle your rental units for you if you do not want the responsibility, or if you feel you're not experienced enough at the moment.

Drew Sygit · Answer

Depends on your goals.

MF allows you to scale faster - which should mean more income.

Wale Lawal · Answer

@Nicholas Halterman

Single-Family Homes (SF) and Multi-Family Homes (MF) are two types of property investments that have different appeals. SF houses are easier to maintain, have greater appreciation rates, and appeal to a bigger buyer market. MF houses provide improved cash flow, economies of scale, and faster portfolio development, but they may not appreciate as quickly. The VA Home Loan provides perks such as $0 down payment, reduced interest rates, and no Private Mortgage Insurance (PMI). To make a wise decision, examine your comfort level, goals, local market circumstances, and property management.

Good luck!

House Hacking a Single-Family Home or Multi-family?

House Hacking a Single-Family Home or Multi-family?

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