Why I Pick Single Family Over Multi-Family Anyday. And You Should Too

Real estate has been my passion since starting in this industry in 2009. But a couple of years ago, my passion became even more focused when I purchased my first single-family home. I was hooked.

Double-Digit Returns

After all my expenses are paid, I am still able to achieve a double-digit return on single-family homes. With multifamily homes, my returns wouldn’t be nearly as much after expenses.

Lower Inventory

Here in Indianapolis, single-family homes are easier to find then multifamily units. Unfortunately, most of the multifamily spaces in Indy are in more challenged areas.

Of course, that isn’t the case everywhere. In Manhattan, multifamily dwellings that rent for four digits are everywhere you look, but single-family homes are more challenging to find.

However, a universal reality is that single-family homes are easier to renovate than multifamily. As a rule, single-family homes are more isolated. The more populated the area, the stricter the government is about building codes.

And with multifamily, your renovations will be more restricted to certain hours, as noise can have more of a direct impact other tenants. And not only will contractors be in the way of these tenants, nosy neighbors in multifamily buildings are more likely to interfere with (and complain about) renovations.

So if you want to flip more properties in less time, single-family homes are the way to go.

Invest in What You Know

Investor Peter Lynch was once famously quoted as saying, “Invest in what you know.” I have spent countless hours studying residential properties. I have now vetted well hundreds of single-family homes.

This is what I know. So that is why I stick to investing in these homes.