SFH versus MFH?

[Matthew Gentile]

Hi All,

I'm curious how current investors feel about SFH versus MFH, I understand SFH is not the best scaling factor for real estate investment, instead I was hoping to see if there is an argument FOR SFH over MFH? (specifically long-term, non-vacation rentals) Would love to hear a discussion on this!

Thanks for sharing your thoughts!

[Bradley Buxton]

@Matthew Gentile

We work with clients that chose both as a mix in the Reno, NV area. Both SFH and MFH have pros and cons. SFH are more available, affordable, and sellable because of higher demand and larger market pool of buyers making SFH more liquid. You can diversify your portfolio with multiple SFH. However, if you lose a tenant, you lose all income.

MFH are more costly and  in most markets scarce, and can be harder to sell because of the limited buyer pool. But they provide steady income even with vacancies. The downside is more maintenance and repairs, more toilets, stoves, water heaters etc...

Depending on what your goals are for the investments and your acquisition strategy would point you toward one asset class or another.  You also don't have to stick with one or another. Mix and match depending on your ultimate goal and plan.