Now I know there are many factors such as location and stuff like that but let's consider the external factors to not affect this. Also I do realize that everyone is different, but from your experience, would you say, a SFH or Duplex is a better investment?
I would like to add my own input and see if what I believe is correct:
It seems to me that there's no reason to spend $100,000 on a single unit property when you can invest that $100,000 on a property with two units which you can
I've been reading around a lot and noticed that duplexes seem to have an edge over a SFH, but there are still a lot of people who prefer SFH, so another question that I have why would one buy a SFH over a Duplex? Is it because SFHs is cheaper? Or are they easier to find? Or is it easier to manage?
People say SFH are a good way to get started in investing but I actually think the opposite. If you only have one SFH, then if you can't rent it out, you start losing money on it.
It depends on your area. If multifamily is the norm in your area I would look at the roi and go with whichever is higher. Personally, I like sfh because it is the safer investment. In Kansas, people live in houses- certainly many people do live in apartments and duplexes. The sfh is safe because if I want to sell the property I can sell it to investors or regular buyers. With regular buyers you have the opportunity for an emotional purchase, thus driving the price higher. I have no problem renting a sfh because people in duplexes and apartments want to upgrade; I can also capture the sfh renter by offering a better product. I would search your area harder and see if you can get a sfh for cheaper than the cost of duplex- ideally 50% less. I'm interested to read other opinions. Good luck!
I’m just gonna bump this to see if some more people want to chime in
@Ryan Dao @Jonathan R. Ryan, jonathan gave you some great pointers. I am originally from outside of Philly so i know the are. I just completed my first deal down in North Atlanta and it was a SFR. I chose that because 1. it was my first try and 2. multifamily is out of my price range here. I was able to fix it up a bit my own and it rented in out in 2 weeks and hes been great thus far. You can bring higher rents on SFR (in my area) and offer other amenities (a backyard). Then of course exit strategy would be to sell to a regular buyer instead of an investor.
However, if you can grab a great deal on a duplex go for it. rent it all out or live in one side. Whatever makes the most sense for you!
Always target your strategy for your own market and goals. Some places mfh works best. Some places sfh is your only real play. Does it matter what works in my market if it doesn't work in yours?
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