Single Family vs. Multi Family Properties

3 Replies

I'm new to the real estate investing world and battling whether to buy-and-hold a single-or multi-family unit. 

You'll hear a lot of varying responses IMO multi family is the way to go for:

1. Better hedge against vacancies i.e. duplex one unit is vacant still have another to cover mortgage; single family goes vacant lose all gross income for that month

2. From my experience they provide more cash flow 

3. I can house hack which is a great investment strategy for beginners and keeps cash flow coming while building equity in various properties

I have gotton various responses, but multi family seems to be leading from what I have heard anyway. I would like to know if you can/should use a property manager if house hacking. 

Multi family has been much better for me. 4-plex properties sell for just above a single family property in my area and provide a ton more cash flow, however, since properties under 5 units fall under residential lending rules, generally speaking, their appraisal is based on market comps, so there is a good chance that they will not appreciate nearly as well as a SFR. I try to aim for a mix of 4-to-1 Multi to single, cash flow for now, appreciation for later.

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