Which is better a single family or a multy family.

[Esteban Chavez]

My plan is to have my tenants pay for my monthly payments and make some cash flow out of it. But I haven't decide which one is better options, and can FHA loan work on a multifamily?

[Ronald Stephenson]

@Esteban Chavez Dependent on your climate of chooses in your market. A single-family can be leveraged to pay the monthly payments and fixed expenses of wifi and such. For an SFR, you can utilize each room for a new tenant; safety is a concern if you do not know the people. But if you happen to have a few people you know and trust to pay you in time to make the monthly payments, they may agree. Of course, there are many ifs here, but I just wanted to mention it as an option.

Can an FHA loan be utilized for a multifamily property? Yes. There are some stipulations, of course. It has to be your primary residence. The multifamily can not exceed four units; once it does, it is considered a commercial property, and FHA says no. With FHA, there are a few tags on options you can do. You can utilize an FHA 203k loan that will provide funding to fix up the multifamily, allowing some force appreciation and the ability to refinance for cashback in hand or newer appliances if significant repairs are not necessary. Of course, conduct your research.

In short. Yes, FHA loan works on multifamily; I didn't mention they can help you scale your real estate investing journey. Choosing between SFR and multifamily, I would prefer multifamily for higher cash flow and more minor things I require to share with the tenant.

I hope this helped.