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Updated over 5 years ago,
New Investor looking at multi-family versus single family
Hi all,
I'm brand new to the forums and just getting started in my real estate journey. I have been looking at real estate, reading the books, and listening to Bigger Pockets for about 5 years now. I understand the difference between how multi-family and single family is priced but I'm confused on the returns between the two. Most of the single-family homes I have looked at, if trying to compare to a "cap-rate" they generate a lower net income than the multifamily units. Is this typical or are these just bad deals?
I'm trying to figure out were to look for some of my first deals, if I should head towards a more commercial route with 5+ units per buy or the duplex/triplex style houses. I am trying to do my first buy sometime in the next three months or so. Thanks in advance for any advice!