You may be considering buying real estate as an investment. You might be looking into buying either single-family or multi-family homes to be a rental property. It is a great way to invest and grow your money over time. Real estate does ebb and flow with overall income and the state of the economy but it is a stable and usually upward building investment.
Single-family homes might make for a better investment strategy for you in the long run. If you are trying to decide between a multi-family or single-family home, here are some reasons that a single-family home might be the better choice.
One of the top reasons why it's better to invest in a single-family home instead of a multi-family home is it typically costs less all around. The initial investment or downpayment is lower for one. A single-family home will also have a lower mortgage overall than a multi-family home.
Plus, overall the maintenance costs will be lower. The cost of repairs to the home will be less in a single-family home than a multi-family. Multi-Family homes have more bathrooms, kitchens, lighting fixtures and more that will need fixing over time making your costs to run it and repair it much higher than a single-family home.
Better Chance At Resale
If you decide to sell the home one day, you will have a greater chance to sell it quicker than you will with a multi-family home. Not all people or even investors want to buy an apartment building or a duplex, so it may stay on the market for longer. A single-family home will sell faster because the potential buyers won't be limited to just investors but to people who are home buying for themselves as well.
Tenants Stay Longer
Tenants tend to stay longer in single-family homes rather in multi-family homes or apartment buildings. This means a lower tenant turnover for you. Most people who rent single-family homes are actual families with several kids who want to be near good schools and in good neighborhoods. They think of the space as their own while they are there and will stay for longer periods. This helps you to not have to search for tenants as often.
They will also care for the property as if it was their own. It can save you time and money for them mowing the lawn or doing minor repairs as oftentimes, renters in single-family homes take on those chores.