Single-Family VS Multi-Family Investing

If you plan to invest in real estate, it’s important to understand the difference between single-family vs multi-family investing. It will help you channel your money into an investment that works for you. Both single-family and multi-family properties have unique pros and cons. This guide explores the advantages of both properties.

Let’s look at the differences between these two types of real estate. Generally, a single-family property accommodates one family, while a multi-family property hosts two or more households. An example of this is condo communities and apartment buildings.

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Now, let’s dive deeper into the differences between the two investment properties.

What is the Difference?

A single-family property is a property that’s freestanding and shares no walls with other residences. In other words, the structure can only host one household. On the other hand, a multi-family property has several residential units in a single structure. The units can be next to each other, but separate.

Benefits of Single-Family Investment Properties

So, why would you invest in single-family rentals rather than multi-family rentals? Here are the advantages of single-family investment properties.

  • Investing in single-family properties is cheaper as it requires less capital
  • A single-family property usually has fewer chances of being vacant
  • You can quickly resell a single-family property in the future
  • Maintaining a single-family unit is easier than a multi-family property

Benefits of Multi-Family Investment Properties

Like single-family properties, multi-family property investment also has numerous benefits, including:

  • You’ll enjoy lower costs per unit
  • Multi-family rentals tend to appreciate faster
  • You’ll be able to expand your investment portfolio in real estate
  • Multi-family properties provide better cash flow and bigger financial cushioning

Bran Real Estate Services and Multi-Family Investment

Now that you know the difference between single-family vs. multi-family investing properties, you can make the right investment decision for yourself. Bran Real Estate Services specializes in small, boutique, multifamily properties. We can guide you through the process of investing in your first multifamily property, and even manage it for you once it’s ready. 

Contact us to learn how Bran Real Estate Services can help you with your multifamily investment.