SFR v. MFR.

5 Replies

I hear a lot of people talking about purchasing Single Family houses and I don't quite understand (I don't disagree....yet)why they would buy them over a Multi Family.
I am an investor and have all MF properties.
My philosophy has always been about getting more units. I am trying to learn as many different ways to invest.
With that being said, can anyone give me some pros to investing in SF as opposed to MF?
Thanks
Justin

Get ready for a storm of comments. I've been getting why MF is so bad for 2 days now. 

I guess it depends on the "potential" quality of renters.  I'm not against MF and enjoy the idea of it, but my townhome SF's bring highly qualified, paying on time, boring tenants.  I love boring.  I guarantee my tenants would have never looked at a MF.   That doesn't mean you can't find those with MF, but with SF you pretty much eliminate the rift raft.  

@Justin S.  I have a multi and am in the process of purchasing another.  When I run the numbers on both in the region I'm looking to purchase, the multi's seem to cashflow better. @Bryan N. is correct. You will get better and more long term tenants in SFR's. To me I see it as if one of the 2 units is not rented my mortgage is mostly paid for. If I own a sfr and its vacant, that hurts. It's more risk unless you have several units to make up for it.

For me its a numbers game and I can't produce the same numbers with the same amount of capital as I would if I invested in SFH. One main thing for me is the vacancy factor when a SF goes vacant there's no telling when it might rent again and during that period you are making $0 in gross income compared to vacancies with MF there are still renters that are providing gross income to offset the mortgage, insurance, taxes etc.

I hear that about the longer term tenant but I look for the better cash flow and the covering myself with the other rents coming in as mike b was saying.
I find MFs cash flow much better.
I have 18 units with two buildings being a 5unit and a 4unit.
I think of the fact that I have two roofs for 9 units too.
I know it's all preference but I certainly lean towards the MF all day.
I am currently looking for something around the 6-10unit range.