Multifamily vs. Single Family
Single-family rentals may be a good way to start investing in real estate, but they lack economies of scale and take a long time to grow. Multifamily properties, on the other hand, offer tax advantages, above-market returns, and passive income without the hassle of being a landlord. Invest in multifamily now for potentially more profitable assets.
Most people have heard the saying that Real Estate has produced more Millionaires than any other asset class. Which is true, but most people go straight for single family properties as rentals and take the landlord route not knowing it's another way to get involved.
Investing in Single Family rentals are a good way to get started but they have absolutely no economies of scale, and you have no control over the properties value. The other thing you have to consider when choosing to build your net worth through SFR is that it takes an extremely long time to grow and scale due to all the work you have to put in searching for good deals and the minor or major renovations you may have to do to the property to make it "rent ready".
The normal way to get started would be to start by purchasing single family if you're new and then begin investing in Multifamily after you've went through the troubles of being a landlord. You can "Skip the line" though and start investing in Multifamily now if you already have a high income business or career, you can even invest using your retirement accounts.
Multifamily provides tax advantages, above market returns, return of capital, ability to leverage, the ability to invest a part of a group to acquire a potentially more profitable asset, forced appreciation, passive income and more.The best part about all of the above advantages is that you don't have to do any of the leg work or deal with the headaches of being a landlord.
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