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Updated almost 16 years ago on . Most recent reply

Duplex/Triplex/Quadplex vs SFH?
I have only recently decided to get into real estate investing. As of now, I have no properties. I am looking at getting into multifamily investments. Granted there are pros & cons for each, but as an investor which would you rather have?
Most Popular Reply

Goals and business model would affect your decision.
Small multi family units often provide mor ebang for your buck (better cash flow for the cost) and you get multiple doors with only one loan.
Down side is the exit strategy is usually limited to investors only where as a SFR can be sold to both end users and investors.
Multi familys can offer forced apprciation via increasing income and lowering expenses, but SFR's, if bought at the right time in the right place, can offer better appreciation from property value increases.
If you want to ultimatley run a landlording business and earn enough cash flow to support you and your family, multis may be the better choice for you. You could then progress into larger apartment buildings getting many multiple doors with only one loan.
Right now, Fannie keeps you at 10 and Freddie keeps you at 4 loans max.
Taking that into consideration, you need to decide your strategy first, then choose which fits that strategy.