Single Family vs Multi Family Rentals

[Jordan Santiago]

Hey BP,

I am currently stuck trying to make a decision whether to go all in on multifamily, or single family rentals. I am 26 and currently have a 10 unit, an 8 unit, a 5 unit, and a duplex. Obviously there a pros and cons with both:

Multifamily is easier to scale quickly, economies of scale, bigger deals/numbers etc

But i do also believe with the housing shortage and the ability to find good deals much easier than multifamily, it makes it very interesting.

What are you currently doing? And what are your thoughts/advice on which direction I should go? Any insight, feedback appreciated. Thank you!

[Jeff Tanner]

First, congratulations on building a portfolio of investment properties. Multifamily properties offer economies of scale, higher cash flow, and diversification potential, while single-family rentals provide simplicity, easier management, and potential appreciation. My investors often consider factors like market conditions, financing options, and your ability to handle multiple units before making a decision that aligns with your long-term investment strategy.

As a property management company, managing a well-maintained multifamily property is often more streamlined and efficient than handling multiple single-family homes. The centralized nature of multifamily properties allows for easier oversight, maintenance coordination, and streamlined tenant management, making it a preferred option for efficient property management operations.