Single family rentals

113 Replies

I am interested in hearing from people whose portfolio consists of single family rentals. I currently own 7 sfr. I’ve had great success acquiring them over the past three years. But it seems like this is the point where most people start investing in multi family. I’m not really wanting to do that. I run a car dealership in Maryville TN and love my job. So I really just want to keep snagging up sfr. Hopefully over the next ten years I can acquire about 30 more. Has anyone taken the single family only route? If so please lend some information on why you chose it. My initial goal was 40. But with me only being 28 years old. I think I should be able to pass that up 

@Phillip Massey I'm only going to reply because I think it's a good question.

I have a mix and am more focused on multi-family because I can get a better cash-flow with them in my market. However, I recognize the value in only SFR. It's less work, they appreciate better, I think they're easier to sell off, etc.

Honestly, it all comes down to what works for you. I think you're already killing it! Set your goals, stick with them, but don't be so rigid that you can flex if the situation requires it. Nice job!

Many folks stick to SFH, there is nothing wrong with that. I have both. For me, it helps to have a goal and a strategy but sometimes experience reveals you prefer one over the other (pros and cons to both- I particularly like that the vacancy rate is much lower in my SFHs). Additionally there are lots of players in multifily right now in my area so the best deals go quick.

Hi Phillip,

I have a mix of SFRs and multi-families.  What I have been buying is SFRs and that will be my main purchase moving forward.  I think it will give me an advantage down the road.  I now have a product that differentiates myself against the large apartments being built. Families who get tired of living in apartments can rent my houses. I can never compete with the big boys but I can carve my niche. I still invest in multi-families but I do that through syndication.  Gives me the best of both worlds.

I am multi only . Much better returns
Originally posted by @Dennis M. :
I am multi only . Much better returns

 Awesome man. Thanks for tre UNREAL advise 

I like SFR's for a few reasons. It is easier to have the tenants do the snow, lawn, and cover all of the utilities. I have a duplex with a shared driveway and lawn. Hard to split the responsibilities. The SFR's are easy to buy and also easy to sell quickly. People tend to treat them more like their home and stay longer. I definitely want to do large multi down the road, but you have to start somewhere so I am going to try to build up a portfolio of SFR's until I can pull equity out to invest in larger deals. They are a good stepping stone for the common man/woman.

@Phillip Massey great post! I am interested in reading all the responses because I started buying SF homes 14 months ago (I have 5 total now). All my properties are in my hometown So it is easy for me to self manage them right now. I want to buy multi-family homes but I keep finding deals on SF homes in my area.
@Phillip Massey I'm exactly like you Phillip, I only buy single families and I love it. About to hit number 40.. All these people harping about multi family has such better returns...whatever... I absolutely crush it on single family homes and I think it's more enjoyable than multi families..
Originally posted by @Mark Fries :
@Phillip Massey

I'm exactly like you Phillip, I only buy single families and I love it. About to hit number 40..

All these people harping about multi family has such better returns...whatever...

I absolutely crush it on single family homes and I think it's more enjoyable than multi families..

 That’s awesome man. Do you self manage or have someone manage them for you?

@Phillip Massey I self manage and work a full time job like you...and I enjoy it all...lol

I’ve only bought sfh so far, I’m at 4 in 12 months. There are very few multi families in my area outside of inner city C/D neighborhoods. I get very nice cash flow out of my townhouses. But the singles are way out of price range to get even the smallest cash flow. My max will probably be 6 or 8. I have a decent amount in the stock market as well as 4 kids approaching college age. It’s really a matter of preference. My gold mine location has zero apartment complexes and zoning that doesn’t allow anymore townhouses to be built. Picking up these sfh allows families to move to a great school district. Virtually no competition for my rentals. I have a waiting list of future tenants if/when I acquire more. 

Originally posted by @Mark Fries :
@Phillip Massey

I self manage and work a full time job like you...and I enjoy it all...lol

 Hey Mark, how much time do you think you spend per week on your rentals? 40 is awesome man. Hopefully I'll get there in the next 5 or so years

@Phillip Massey Management: maybe 3 hrs a week Acquisition and rehab of new ones: 8 hrs a week
@Phillip Massey And I work about 50 hours a week at my regular day job... I probly work 65 hours a week and that's only because I really just love working in general. It's what I do! Some people have a bunch of hobbies or do a lot of traveling I pretty much just work and it brings a lot of enjoyment to me!

@Mark Fries that’s impressive! I work 50-60 hrs a week and trying to figure out when to fit in more than 4 sfh and 1 commercial. We self manage but it takes a lot of time to acquire and reno. I have 4 kids too (think that’s the complicating factor). You have any kids? Lol 

@Amy Leonard Yes I have a 15 mth son...he is a handful but the love of my life!!!!

@Phillip Massey

Good job on investing. I started with SFH and now have a mix multifamily and SFH. The SFH rent great, higher rents, less maintenance, greater cash flow per unit but not per building. The multifamilies require more pm but are good investments either way. In a few years the cash flow will be fantastic as I pay them off.

Good Luck. 

@Phillip Massey I'm very early and have 2 (previously 3) SFR rentals. I plan to continue to buy mostly, if not solely, SFRs going forward for a few reasons.... 1) Better appreciation than multi. 2) Easier to sell if necessary. 3) Generally a better, and longer term tenant. 4) No tenant on tenant drama. Dont have to hear about the "upstairs neighbor", etc.... There may be a point where I find a multi deal that I cant resist, but right now I'm focused on SFRs

I have 14 unit s all SFR. I would venture into MF if I could find a decent deal. My buying parameters require 1995 or newer units and sellers want a fortune for them. So at this time I am content to continue acquiring more SFR. In my area our rents are strong and most avg about 1300/month rental rates or higher. 10 of the 14 are free and clear leaving a nice net after OE and debt service.

@Mark Fries Are you utilizing a property management software? 3 hours a week for 40 rentals! That’s impressive systems you have
Originally posted by @Mark Fries :
@Phillip Massey

And I work about 50 hours a week at my regular day job...

I probly work 65 hours a week and that's only because I really just love working in general. It's what I do! Some people have a bunch of hobbies or do a lot of traveling I pretty much just work and it brings a lot of enjoyment to me!

 How long have you been buying rentals?

Originally posted by @John Thedford :

I have 14 unit s all SFR. I would venture into MF if I could find a decent deal. My buying parameters require 1995 or newer units and sellers want a fortune for them. So at this time I am content to continue acquiring more SFR. In my area our rents are strong and most avg about 1300/month rental rates or higher. 10 of the 14 are free and clear leaving a nice net after OE and debt service.

That’s awesome returns John. Are you paying cash for them, or using financing? 

Originally posted by @Phillip Massey :
Originally posted by @John Thedford:

I have 14 unit s all SFR. I would venture into MF if I could find a decent deal. My buying parameters require 1995 or newer units and sellers want a fortune for them. So at this time I am content to continue acquiring more SFR. In my area our rents are strong and most avg about 1300/month rental rates or higher. 10 of the 14 are free and clear leaving a nice net after OE and debt service.

That’s awesome returns John. Are you paying cash for them, or using financing? 

 I have the ability to do cash out refi and use that money to acquire more. I am now targeting foreclosure sales.

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