Where to put cash - SFH or commercial Multifamily?

[David B.]

Hi all -

I recently freed up about 300k and I’m debating what would be an appropriate use of the funds. 

Iv only been seriously investing the last 2 years or so, so Iv still got some training wheels on (hence why your feedback would offer some real value/guidance) 

Basically my thoughts are I could use the money to purchase roughly 1.5 million in single family homes or 1.2 million in a commercial multi family. 

My goals are mostly centered around long term growth/ wealth, as opposed to cash flow. Although obviously it’s very important I buy an asset that can cash flow - especially now. It’s just not necessarily my first priority. I’m hunting  “quality assets” so to speak. 

Since the market is so wonky I’m holding tight at the moment. I’m currently in SLC  - prices are dropping a bit so may be great buying opportunity. 

Alternatively- I see some awesome multi families floating around Texas / Florida / TN area.

I know this question is also one of preference. i guess I’m wondering what tends to be the better growth strategy? If I owned 5 houses in SLC (or other growing market) and they double in 10-15 years, is that more productive that sinking all my cash into a Multifamily? 

I should point out - ideally I will value add on any deal I can, to recycle my money and scale as quickly as possible. But assuming I couldn’t do that… 

Thanks for your thoughts! Best,

DC