Which is the better investment?
If you’re planning to expand (or start) your real estate investment portfolio, you may be considering whether it makes sense to purchase single family or multi-family units. Both options can provide you with some nice benefits.
But not all types of property are right for all residential real estate investors. So, having a handle on your specific goals – as well as the amount of time you have available to manage and maintain your investment(s) – is a good place to start for narrowing down which could be best for you.
Single family properties can often require fewer up-front costs – particularly in comparison to larger multi-family parcels. In addition, single family properties are typically also easier to finance – especially if you put forth a 10% or 20% down payment.
On the back end of your real estate investment career (or whenever you opt to sell off some of your inventory), single family properties can be easier to sell because they may be attractive to other real estate investors, as well as to consumers who are looking for a primary residence.
Some of the main drawbacks to owning single family rentals, though, include an interruption in rental income when the property is vacant. This differs from multi-family properties that could still be generating income from other tenants when one moves out.
With that in mind, one or more multi-family properties can help you to leverage your incoming cash flow. This property option can also help you with expanding your investment real estate portfolio much more quickly.
In either case, the time that you spend managing and maintaining any type of real estate investment could keep you from doing other things. That’s why brining an experienced property manager on board can be highly beneficial.
If you own residential investment property in Orlando and/or the surrounding Central Florida locale, contact us for more details on how a professional property management team could benefit you.