Which One is The Safest? Multifamily or Single-Family?

Whenever we discuss self-investment and the ways of starting a business in the real estate market, we always get questions like - at the end of the day, which one do you think is the safest way to self-invest?

Finding the answer to this question isn’t as simple as you may think it is, as it 100% depends on the investor himself and what seems safer for them. Both markets have their pros and cons, just like everything in life, but to not dive too deep into the topic and keep repeating everything we already know about real estate itself, let’s take a look at what both multifamily and single-family markets have to offer as far as the safety goes:

Single-family:

Definition: It is designed specifically to be suitable for only one family and is also referred to as a stand-alone house.

One of the main points of being a single-family landlord is that you are working with only one tenant. This is considered as a safe choice for newbie landlords who have no experience of working with tenants. If you are new to the real estate business, it is definitely smart and safe to start small and gain enough knowledge to later manage bigger properties.

The other aspect of a single-family house that can also be considered as a safe one, is that they are mostly rented for 1 or more years, which means that you have guaranteed, safe and stable income for a couple of years.

Multifamily:

Definition: It is a housing that contains multiple separate living units in one building.

Multifamily apartments are known for being a safe choice since in this case you are working with multiple tenants, which means a guaranteed monthly income. For example, if one or two of the house units are vacant you still have other families paying the rent price so you are never left without any money.

Additionally, having other tenants allows you to not worry about some of the families leaving and gives you the time to look for new tenants in peace.