SFR or 2-4 units. Why?

[James Wise]

Do you prefer buying single family homes or 2-4 unit homes? Why?

[Erik W.]

I own all of the above and prefer SFHs.  MFs are priced too high in my area, exit strategy is limited to cheapskate, low-ball investors like yours truly, and I don't like "my neighbor's dog barks all night" phone calls.

While MFs have their place, there is always a strong demand for a house with a yard, especially for people with pets.  I allow pets and charge a pet fee plus monthly pet rent, so generally my rents are very good compared to the "all in" costs.

The only real advantage I see on my MFs is the cost per unit for insurance, taxes, and some repairs is lower compared to SFH, but some of that benefit is lost since I provide lawn mowing at MF. I don't own anything bigger than a 4-unit, but if I did I'd likely have to provide trash pickup and possibly pay water/sewer as well. I hate master water meters as tenants are not encouraged to conserve or report leaks. Let me tell you about the time I got a $600 water bill for ONE month at a duplex, when the bill is normally about $60.... (*wink)

I think if you're going to go multi, my thought is go big or go home.  I don't see achieving much in the way of the economics of scale until you start getting upwards of 20+ units in a single location.  Then you will probably save enough on major repairs like roofs, etc. to offset the cost of provided amenities.

To each their own, though.  If they make money, who cares?  ;-)