SFR vs. Multi-Family: Pros/Cons

[Eric Chiang]

Hi BP, rookie here. Been investing and analyzing small multi-family properties (currently househacking a duplex in Riverside, CA), and recently discussed partnering up on a SFR in CA with a friend (will be forming official partnership or LLC).

What are some of the pros/cons/differences of investing in SFR vs. residential multi-family properties (2-4 units)? I'm more familiar with small MF, and I just wanted to weigh each side of the argument.

From my initial thoughts:

SFR: 

- Competing against families looking to buy a personal residence

- Dealing with tenants that may focus more on school district/area to raise kids

- More properties available on market to analyze

- Potentially easier exit strategy 

Multi-Family:

- More rental income for less paperwork, without 2x the amount of work

- Limited buying and selling pool (would likely deal with another investor)

- Potential for tenant disputes on property

Thank you in advance for the help, happy investing!