SFH or Multi...that is the question!

6 Replies

Hello All! I am a new RE investor, though I have a background in property management. I have been in the industry for 8+ years and have managed upwards of 900+ units at a time. I have been a spectator who has fallen into the trap of "analysis by paralysis" but am at a place where I am finally willing to take action! Based on my background, I was curious to see if it made sense to start out my personal investment portfolio with a multi family asset or SFH? I'd love to hear your suggestions and experiences. I'm leaning more towards multi family although there doesn't appear to be such a large market in the DMV (DC, MD, VA) area for smaller assets (2-6 units).

Thank you in advance for any feedback!

@Travis L. Congrats on taking the first step! I think the MFH is a better option for you, especially since you have prior management knowledge and experience. Would you rather get 4 different loans, appraisal, inspections, etc. for 4 SFH homes, or do that once for a 4 unit property? Good luck and keep us posted on what direction you go!

Hi Travis,

I recommend MFH. It's best to have multiple tenants to cover and mitigate your expenses. There's also a better re-sale value in MFHs than in SFHs. 

Best,

Barry

Keep in mind Muti is always harder to liquidate should you ever need to. Other than that if you've got the $$$ multi is my preference. 

Originally posted by @Josh Mitchell :

@Travis L. Congrats on taking the first step! I think the MFH is a better option for you, especially since you have prior management knowledge and experience. Would you rather get 4 different loans, appraisal, inspections, etc. for 4 SFH homes, or do that once for a 4 unit property? Good luck and keep us posted on what direction you go!

 Thanks Josh!  I definitely agree with your logic and am leaning more towards MFH.  I will definitely keep you posted.

Originally posted by @Barry Herbst :

Hi Travis,

I recommend MFH. It's best to have multiple tenants to cover and mitigate your expenses. There's also a better re-sale value in MFHs than in SFHs. 

Best,

Barry

 Very good points Barry!

Originally posted by @Ryan Dossey :

Keep in mind Muti is always harder to liquidate should you ever need to. Other than that if you've got the $$$ multi is my preference. 

 I'm definitely thinking it'll lribably be multi.  Great articles by the way on your site.  I love the Groccery Store Model!