Choosing a property type focus

[Zach R.]

Hey everyone,

New to the BP forums, just moved to Austin, TX and excited start investing. I am in the process of creating my strategy and I wanted get some insight on SFH investing vs small MF (2-4 units) investing. I've been contemplating the idea of avoiding SFH altogether and strictly focusing on a MF strategy. My reasons are the following:

1) Cash flow is my primary goal, and based on my findings, SFH property doesn't typically yield exciting cash flow, in terms of actual dollars or ROI, compared to MF property.

2) Each asset class seems to require a different marketing strategy. For example, I would imagine that marketing campaign targeting SFH's would focus on targeting distressed or motivated home-owners, VS a MF strategy, which would focus on targeting owner/investors. Maybe this is the wrong way to look at it, but it just seems that if you want to specialize and work a niche, focusing on both is probably not ideal.

Looking forward to everyone’s thoughts, especially if you have experience investing in both asset classes.  

Thanks! 

Zach