Multi-Family & Single Family Comparison

[Johnny Corbett]

Hello Everyone,

I started investing in single family a little over a year ago. I'm now wanting to purchase a small multi-family property of maybe 8 or so units. The property manager I use for single family has said they have the same property management fees for an eight unit building or a single family home. They charge 10% or a minimum of $75 per property. So, on the single family properties I try to purchase properties that rent for at least $750 per month. I've learned that a lot of small apartments in my target market rent for $500 to $650. Is it typical to pay the same minimums for small apartment buildings? If so, is it still feasible to purchase a building with $500 rents and pay $75 per unit for management?

I'm primarily looking for monthly cash flow. I would love some input from other investors that have invested in single family and small apartment buildings to get a feel how the two compare regarding cash flow after expenses?

Thanks,

Johnny

[Ryan Hopkins]

@Johnny Corbett Generally the cash flow from multi family properties will allow for a greater return simply because of the efficiency and costs associated with purchasing say a duplex vs a sfr (obvious variables simplified). Negotiate with your pm company and if they aren't willing give @Heather Hopkins a ring...they have pm and investor services under the same roof.