Single-Family vs. Duplex: Which is the Right Investment for YOU?

[Jonathan Small]

Choosing between a single-family home and a duplex is a classic real estate investor dilemma. Both offer unique advantages, but understanding the trade-offs is crucial for making the right decision. This is how I see it:

Single-Family Homes:

• Pros:
  • Larger pool of potential tenants (families).
  • Simpler management (one tenant, one lease).
  • Often easier to finance.
  • May appreciate faster in some markets.
• Cons:
  • Only one income stream.
  • Vacancy hits harder financially.

Duplexes:

• Pros:
  • Two potential income streams.
  • Live in one unit and rent the other (house hacking!), reducing your housing costs.
  • Potentially higher cash flow.
• Cons:
  • More intensive management (two tenants, two leases).
  • Can be harder to finance than single-family homes.
  • May not appreciate as quickly in some markets.

Here's where I need YOUR input!

• 1.  Single Family vs Duplex?
• 2.  What are YOUR top priorities as an investor? (e.g., cash flow, appreciation, ease of management)
• 3.  Have you considered specific local market conditions? (e.g., rental demand, property values)
• 4.  For those who have invested in both, what were your biggest lessons learned?