What is a valid reason to INVEST in SFH?

7 Replies

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. 

@Evan Parker

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.

I like SFR because, in my area, they are generally in the better parts of town and attract better, longer term tenants. They are much easier to sell, if needed. There are more distressed SFRs in my area as well, probably because investors can't be bothered spending the time, money, and effort to fix them and owner occupied don't want to go through the trouble of renovating a house.

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

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