Posted September 15, 2016 by RentJungle
As an investor in rental properties, you have options. Multi-family housing or single family housing? Itís not a clear-cut decision.There are positives to each and there are negatives to each. It all depends on your needs and your preferences as an investor.

Up front, multi-family housing units cost much more than single family homes, since theyíre typically larger. However, an investor will receive higher cash on cash returns on multi-family units since there are more tenants.

Purchasing single family homes is normally easier and cheaper than multi-family homes. Sellers of single family homes tend to be people who were actually living there rather than investors looking to make a profit. In some occasions, sellers are under the pressure of their emotions and are just looking to sell and might be willing to take a lower price than they would have otherwise. Sellers of multi-family homes tend to be investors who are looking to make a profit and will fight for the best price they can get.

Rent tends to be less on multi-family housing which means your property will appeal to a bigger group of renters. While on the other hand, higher rents mean†youíll attract typically older and possibly more reliable tenants.†

Owning single family homes usually means fewer conflicts. Tenants living in close quarters with common areas and usually nothing more than a wall between them are prone to fighting with their neighbors.

Generally, losing a tenant in a multi-family housing unit isnít a big deal as there are other tenants in the building still paying rent. A tenant moving out of a single family home means downtime where the owner isnít making money from the unit.

In a single family home, there is usually only one meter for each utility meaning that the tenants can pay for their utilities themselves. Multi-family homes usually only have one meter for the whole building so, itís typical for the landlord or owner to pay some of the utility bills.

Be patient when looking for your investment property! Assess your needs and your financial abilities before diving in. Know what youíre capable of and what youíre looking for in an investor experience and youíll be able to find the property for you.
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