The long time debate about SFH and MFH dates back to forever. In my experience you have people who swear by SFH and you have MFH investors that stay away from SFH like their life depends on it.
I figure it would be healthy to have a nice discussion for reason why someone SHOULD consider SFH investing. I think the MFH case kind of fends for itself, doesn't need much backing.
However, SFH on the other hand. What are valid reasons to invest in SFH? Especially considering that it's been proven 10x over that it's not neccesary to start in SFH and "build up".
Let the discussion begin.
There's less insurance, less common area, less shared utilities, and sometimes better financing (though not always as creative). Also you can be more diversified in SFH. It can be easier to sell just one unit in SFH than MFH too.
many people will only rent SFH
Many more to choose from when buying
Many more potential buyers when selling
Easier for renter to accept they are responsible for all pest control and repairs inside and out than on a multi family
Easier to lease option to a renter
Thought of those in less than 60 seconds
But I personally now prefer MF lol
Some markets the MFH inventory is tough areas compared to SFH inventory. Also it'll appreciate diffent than a SFH which in some places could be a lot less.
Geographic diversification, lower barriers to entry, less capital required, and despite the fact that it's been proven that you don't have to use it as a way to build capital for multis, it's still a great way to do so.
it's easier to get rid of a sfh if you need to. Always have an exit strategy. If you only have multi family you're essentially waiting for another investor to buy which limits the pool of buyers.
I own two SFR and plan to buy more before I do multifamily. I enjoy them because they’re easier to manage, tenants probablt stay longer and I’m not on the hook for lawn care utilities etc
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
Join the Largest Real Estate Investing Community
Basic membership is free, forever.