Passive Real Estate Investing TBT: Single-Family vs. Multifamily Rental Property
May 22, 2025
Dive into the classic debate of single-family versus multifamily rental properties! Discover the pros and cons of each, including considerations around vacancies, ROI, and financing options. Learn about the financial perks of single-family homes, like lower tenant turnover and a broader buyer audience. Explore strategies like house hacking for new investors. Whether you're a novice or an experienced investor, find inspiration and tailored advice to align your investment goals with the right property type.
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Multifamily Enables Faster Scaling
- Multifamily properties allow for faster portfolio scaling with fewer transactions despite higher complexity.
- One purchase can yield many units under one roof, reducing the number of deals needed.
Economies of Scale in Multifamily
- Multifamily properties benefit from economies of scale by sharing costs of repairs like roofs and boilers across units.
- Shared maintenance reduces per unit expenses and centralizes property management.
Fair Vacancy Comparison
- Multifamily monthly cash flow may seem higher but must be compared on portfolio level, not per property.
- Vacancy in one unit of multifamily equals vacancy in one single-family home when considering portfolio-wide occupancy.