Multifamily are typically produce better cash flow but a good deal on a SFH can out perform a multi. 

There is also something to be said for having a hedge, some degree of diversification, as @Tara Wright has noted.I think you can find 5 or 6 really super proven flippers, right here in Houston or wherever you live, and go in with them as private lenders and probably outperform average returns from any mutual fund you might own. 

.- Downcycle Outperformance: MHC is the least sensitive property type to negative changes in GDP.

.- Downcycle Outperformance: MHC is the least sensitive property type to negative changes in GDP - the average stay in in MHC is 13 years, unheard of in residential real estate - resulting in stable predicatble cash flow with an ability to consistently, yet responsible increase rents.Lastly, a quick glance at some MHC investors and proponents:Warren Buffett is a significant investor in the MHC space, favoring the sector for its stable, predictable cash flow.

Setup criteria that outperforms other investments and find deals that fit within that construct.

The group leveraged less than 50% out performed the other two by almost 10% annually when averaged over the last 35 years. 

There are plenty of good markets with 10-year growth opportunities that will probably outperform SF over the LT.

If you do an NPV, comparing to the stock markets long term returns, you will more than likely find that the stock market outperforms (S&P index funds, etc)...

So really right in line with historical stock market returns.The beauty of real estate is the it is 1) much easier to buy advantageously (get a good deal) than with stocks--at least for the average person, 2) you can also buy, even without leverage, properties that out perform the stock market, and 3) you can safely leverage 70% to 95% without much difficulty, making your money work much harder for you. 

@Keesha DuminieI would target something where by benefit of skills, relationships, or location, you are likely to out-perform the average expectation.For instance, someone that lives in a small university town is much more likely to out-perform and fix and flips there when compared to an out-of-state flipper.