Multi Unit or Single Family

[Michael Stowers]

hello,

I'm looking to invest in San Diego or Tampa.  I like the idea of a one unit single family because of how much appreciation those types of properties have had.

I also am looking to purchase a duplex or triplex.  I know typically multi unit may have better cash flow but may not appreciate as much as you have to deal with more tenants.  I will be putting a considerable of capital down with either option.  Any feedback or recommendations in regards to these markets and also multi vs. single family?

[Danielle Jackson]

It depends on your goals for investing. You will find very successful investors in both camps. What is most important to you? 

Also, I do tend to agree with others who caution against banking on appreciation. While values have been on the rise for the past several years, I wouldn't plan on them continuing long-term at the same rate. Now if you are including some rehab/value-add, then forced appreciation is a different conversation. More importantly, how long do you plan to hold the property? 

Also, something to think about too is the time value of money relative to inflation. Cash in the hand today may be more valuable in terms of purchasing power.