SFR vs. Multi Unit

4 Replies

Hi BP!

I am finally ready to purchase property and decided to focus on the purchasing in the western suburbs of Detroit, MI. I reside in Los Angeles area and would be hiring a management company to handle my properties.  I originally thought I about multi unit properties, but I was thinking about the differences in responsibility and upkeep of the property.

I like the economy of scales when looking at multi unit, but then I thought about snow removal and the responsibility/liability for doing it on a multi unit where in a SFR the tenant would be responsible for their own snow removal. That would be an added cost and liability. Are there any other things that I need to consider when dealing with multi unit vs. SFR?

Should this be something that I should be concerned with?

Originally posted by @Chris T. :

@Fernando Domingo

Expenses in MF tend to be much higher than SFH. However, one cannot scale up as fast investing in SFH.

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 Thanks Chris,

That is something that I am considering. I think I may start with SFR and move into MF. I'm thinking that starting small since I am starting out of state would satisfy the conservative side.

Just to ask @Fernando Domingo - As a long distance investor -Why Detroit ? Have you been there ?Walked the neighborhoods you want to buy in ?

There are so many threads and blogs warning out of state investors of the pitfalls of investing in Detroit. Be very cautious.

Originally posted by @Saul L. :

Just to ask @Fernando Domingo - As a long distance investor -Why Detroit ? Have you been there ?Walked the neighborhoods you want to buy in ?

There are so many threads and blogs warning out of state investors of the pitfalls of investing in Detroit. Be very cautious.

 Hi Saul,

I have not actually walked the neighborhoods recently.  That being said, I am originally from MI and have family in the area.  It has been a long time since I have lived there, but I feel like I have a basic idea of the area.  I will be in the area for the holidays when I will meet with a realtor or 2 to get a more in depth look at the neighborhoods in cities I am looking to invest in. 

None of my family invests in real estate, but it is comforting to know that if there are any major issues I have them there to at least do a drive by and check on things occasionally.  Also, for the funds that I am comfortable investing the area makes sense and will not be such a blow to the funds if anything goes wrong.  

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