SINGLE VS. MULTI-FAMILY: WHICH IS RIGHT FOR YOU?
Frankly, there are benefits to both. It all depends on the type of property that interests you and whether your workload permits you to properly invest in multi-family properties.
- SINGLE FAMILY UNIT
To be honest, this is how most investors start out. And to be fair, it makes the most sense. It’s natural that a person prefers to dip his toes in an industry before feeling confident enough to go straight to the moneymaker. And if you’re goal is to generate passive income through multi-family properties, you should start out by purchasing a single-family unit and renting that out first.
Another perk of owning a single- family units is accessibility. They are literally everywhere. Search homes for sale into your search engine and Trulia, Zillow and HomeSnap will do the rest of the work for you.
- MULTI-FAMILY UNITS
One word: productivity. Multi-family units are nothing if not production generators. The process of buying a single-family unit is essentially the same as buying a 30-unit building. Multi-family units will also give you faster return on your investment.
Further, most investors choose to renovate their buildings. When choosing a multi-family unit, you are essentially paying more for renovations. Luckily, buying in large amounts of bulk actually saves you more money. Think of it as a grocery store: you are more likely to spend more money for a smaller quantity of items at a Target than you are at a Costco.
Whatever you choose to invest in, you are likely to generate income with both types of properties.
Topics: Real Estate, Investing, Multi-Family Units
Source: Sterling White, https://www.sterlingwhiteofficial.com/blog/sterlingholdfoliocom
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