Investing in syndication vs owning single family homes

[Daniel Torres]

Hi All, 

My current situation is one that I have a fair amount of capital but not a lot of time.   I’m considering investing in syndications vs  buying single family homes.  The syndications appeal to me because of the passive nature but I’m comparing single family homes because they are the less time intensive properties to “landlord” in my area.  

It seems syndications have a fair amount of tax advantages and capital gains can be pushed back through a 1031 making it attractive as well.  Single family homes in decent areas near me (South Florida) are fairly expensive and cap rates are not great.  

Please convince me as to why syndications are better because, similar to many others here, owning a property outright and having full control is appealing but everything else makes me think syndications are a better investment for me right now.

Thank you!

[Todd Dexheimer]

For your situation, it sounds like syndications are a better match. Single families can be great, but only if you have time and if you are going to be able to create extra value through renovation, adding bedrooms, etc. If you want to be as passive as possible, I don't see single families beating syndication returns. 

These articles may help in your journey:

https://www.biggerpockets.com/member-blogs/10145/83067-limited-partner-s-guide-to-investing-in-the-right-deal

https://www.biggerpockets.com/member-blogs/10145/73373-opm-how-to-syndicate-with-success

https://www.biggerpockets.com/member-blogs/10145/72118-syndication-the-ins-and-outs-of-real-estate-syndication