Multifamily vs SFH Buy & Hold

[Jide Alufa]

Hey, im looking to start investing in multifamily and buy and hold. I've wholesaled for a few years and have been part of a 33 unit acquisition that didn't pan out in the end. My mentor says you can get more cash flow and liquidity with SFH vs Multifamily, since brokers seem to want a certain cap rate on sales accross a geographic area vs when working with SFH sellers, they're more flexible and motivated based on individual needs.

What are your thoughts on buying SFH vs Multifamily?

I want to get the most cash flow possible to quit my 9-5

[Frank Wong]

Hi Jide,

I personally invest in SFRs and prefer those over multi-units.  I like the idea of owning a house and having a larger pool of buyers that will value that asset differently in the future.  For me, the tradeoff in cash flow has not been different from the multi-units I own.  I buy properties that are under value and rehab them.  This creates higher cash on cash.  I also buy homes cash which allows me to get the lower price of entry. 

There are also more houses for sale which gives you more opportunities to buy. The big difference I see is that houses will take much longer to scale. If you are looking to get 100+ units it most likely won't happen with houses.   For me, that is not my goal.  I want 30 houses paid off and collect that check.