Is Multi Family Real Estate Investing Better than Single Family Property Investment?

Published October 1, 2016
by Mark Kenney
Is Multi Family Real Estate Investing Better than Single Family Property Investment? – For investors who are looking to invest the money they have saved up in a real estate property, the question of whether to invest their money into Single family or multi family home continues to be one of the most asked and least answered questions. Most people have their own favorites; some may prefer one form over the other while others might vouch for the other form.

To make an informed decision between the two, this article outlines what each investment is about and the advantages that each of one of them offers.

Single Family Real Estate Investment

A single family home is basically an everyday run of the mill investment opportunity where by the investor invests their money into a single residential unit which has no shared walls and has the ability to house a single family at any given time. People who are buying houses and other single family residential units are actually investing in single family homes.

It does have a number of different advantages, which is why a large number of people go for this type of investment. Some of these investments are outlined below:

  • A single family home is cheap. Unlike a multifamily residential unit, there is no need to pay for all of the houses. Instead, you are paying for a single family property which will be both cheaper and easier to afford even when you add maintenance and other expenses.
  • They are easy to manage. The investor will only have one family home to look after, making it easy deal with the tenants, decide whether to sell or not and keep it maintained.

Multifamily Real Estate Investment

Similar to a single family home as it involves investing money into real estate for financial gain, a multifamily real estate involves investing money into a residential building or property which has at least two of more residential units. Each unit will be sufficient to house a family, having its own kitchen, living room, bedrooms etc.

Here are some of the advantages that it offers over other real estate investment opportunities:

  • There is increased revenue; if you are investing in a multifamily real estate unit, you will be able to earn revenue in the form of rent from multiple families, instead of just one.
  • Multifamily property units provide housing for a number of people which is why, they come with a number of tax advantages that the owner can enjoy.
  • Unlike a single family home, investing in multifamily homes spreads the risk of failure to earn an income over multiple family units, instead of vesting all hope one a single unit.

The final decision is on the investor, but if you are ready to spend enough money, a multifamily investment represents a good opportunity.

About the Author

Mark Kenney
Mark Kenney is a seasoned real estate investor, entrepreneur and founder of Think Multifamily. Mark started his real estate career over 25 years ago and has extensive experience in property valuation, acquisition, and operations. He has a passion for helping others succeed in the multifamily arena.