My partner and I have been ramping up and really looking into SFR to invest in over the next 3-4 months(he owns a few SFR already). After having done research on BP regarding both SFR and MFR, I have to admit that my original tunnel vision of SFR is no longer there. After having read 7 Years to 7 Figure Wealth from Brandon it really showed the potential of MFR and building wealth. Anyway, I wanted to get some insight from some experienced investors here on the BP forums. Are SFR a better investment if you are looking for appreciation as opposed to cash flow? Reading through the forums it just seems like MFR do so much better in cash flow so I wonder if there are any clear benefits to investing in SFR over MFR? From what I've read(please correct me if I am wrong) SFR usually cash flow less than MFR but usually keep tenants around longer and you can sell a SFR higher than MFR due to investors usually only having an eye for MFR which in turn they want a great deal.
I would love to build passive income through real estate over the next decade or so to replace my full time job. What do you suggest I focus on? SFR? MFR? Both?
Thanks for any input!
You didn't tell us your end goal, if you want cashflow I would go with MFR, if you want to be able to cash out for more later go with SFR.
@Russ Thank you for your reply. My end goal would be cashflow residual income. It sounds to me like SFR would be my best bet initially, and perhaps pick up a few MFR along the way. Thank you for your input!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you