Single-family vs. multi-unit

[Ethan M.]

I was reading my REI book and pondering things and I realized that in general, single-family homes are for investors who do things like flipping, rehabbing, and other strategies that depend price appreciation. For buy-and-hold/cash flow investors, it's better to purchase a multi-unit dwelling.

Price of single family home is jacked up (relative to rental income potential) because families will pay more for a home for emotional reasons. Also, it's just more efficient to buy and maintain several rental units at once.

Is that more or less true or is it debatable? Comments/insights appreciated.

Ethan