Multi family vs single family home

Multi-Family and Apartment Investing
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Multi family vs single family home

Account Closed
Rental Property Investor · Vista, CA · Member since 2019 · 7 posts · 0 votes

Hello everybody thank you for the last information on the room most recent post it was amazing a lot of insight from everybody and I hope that we can get more input on this topic the current topic is:

I have pre-qualifications for price range of multi family property out here in San Diego and Am able to put down the required down payment.

My only issue is that I cannot find a current multi family home with a good enough ROI. look on all the LMS listing websites and I spent hours , now days looking through hundreds of properties.

On the contrary I do find a lot of single family homes that are up to 15% or more return on investment properties for my first deal it would require a lot less money and a lot less leverage would you recommend that I test the experience to get involved into this I do wanna get on the fast track to earning more passive income and Am able to get a duplex/ fourplex, but again the issue is finding those good multi family deals vs single family deals.

Would you recommend starting small going big? I can retire faster I know it’s a slower process and I may learn a lot but I am ready to excel and turn my earned income to passive income!

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Bob PaxsonPro Member
Flipper/Rehabber · Philadelphia · Member since 2019 · 45 posts · 17 votes
6y

Well let you provide you with my 2cents.... I was looking for multi family when I started Investing problem was not many made sense at that time.. so I widened the net and found a handful of single family that made it easier for me to get into the multi family deals that did made sense down the line.  

If your hart is set for multi just keep your nose to the grind stone as they say and something will eventually appear.

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  • Chris Coleman
    Rental Property Investor · Washington, DC · Member since 2015 · 429 posts · 393 votes
    6y

    @Account Closed I suggest that you decide what type of investment assets you really want to focus on.  If you really want to do multifamily, then be patient and wait for that right multifamily opportunity.  Keep building connections and it will come.

    On the other hand, if you want to be in single-family, or if you want to be in both single-family and small multifamily, then go ahead and seize the opportunities that are before you.

    It sounds like when you say "multifamily", you're talking about 2-4 units. If that's the case, then starting with single-family rentals is fine and work your way up.  If they are that much cheaper, buy 2-3 of them if you can.

    But again, if multifamily is REALLY where you want to be, then just wait for the right opportunity.

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  • Bob PaxsonPro Member
    Flipper/Rehabber · Philadelphia · Member since 2019 · 45 posts · 17 votes
    6y

    Well let you provide you with my 2cents.... I was looking for multi family when I started Investing problem was not many made sense at that time.. so I widened the net and found a handful of single family that made it easier for me to get into the multi family deals that did made sense down the line.  

    If your hart is set for multi just keep your nose to the grind stone as they say and something will eventually appear.

    1Reply
  • Eric Nelson
    Member since 2019 · 11 posts · 4 votes
    6y

    Hey Edward, where are you currently looking to purchase a multi family? The key to excellerating you retirement is not just about finding the perfect property with a decent ROI, but making sure to get the appropiate investor loan to go with it. If you get the right loan you will be able to pay off your property in 1/3 of the time, which would allow you to go out and find additional units to purchase.

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  • Greg Dickerson
    Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
    6y
    Originally posted by @Account Closed:

    Hello everybody thank you for the last information on the room most recent post it was amazing a lot of insight from everybody and I hope that we can get more input on this topic the current topic is:

    I have pre-qualifications for price range of multi family property out here in San Diego and Am able to put down the required down payment.

    My only issue is that I cannot find a current multi family home with a good enough ROI. look on all the LMS listing websites and I spent hours , now days looking through hundreds of properties.

    On the contrary I do find a lot of single family homes that are up to 15% or more return on investment properties for my first deal it would require a lot less money and a lot less leverage would you recommend that I test the experience to get involved into this I do wanna get on the fast track to earning more passive income and Am able to get a duplex/ fourplex, but again the issue is finding those good multi family deals vs single family deals.

    Would you recommend starting small going big? I can retire faster I know it’s a slower process and I may learn a lot but I am ready to excel and turn my earned income to passive income!

    This really depends on your level of knowledge and experience, your financial resources and what size property you mean by multifamily. I'm many cases you can generate a better ROI on SFH given the current pressure on CAP rates for larger multifamily typically 30-100 units and up but as you know is a much slower inefficient way to scale. You can find some deals for properties under 30 units but you have to find them direct to seller in most cases. Commercial properties can often generate better returns than SF or MF and can be easier to scale again depending on your available resources.

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