Do you invest in multi family units? You made some good points. I agree that you in multi family you are dealing with one roof. But, here in most 4-10 unit complexes each unit has their own water heater, A/C unit, furnace, stove, fridge, toilets, misc (same as single family). Thus you are dealing in 4-10 separate sets of appliances, toilets, etc, as in single family rentals.

I agree with your vacancy rates. If you only have one single family and it’s empty then you have 100% vacancy – not good!

I prefer the 10 single family properties, because they are spread out. I don’t like my tenants living close to one another. We have hurricanes and tropical storms here. What a about a fire? If one comes and takes out my multi unit complex then I’m done, but unlikey that it will take out all 10 of my single family houses in a 5 mile radius.

A multi family complex will always be in a rental area. What if your multi unit neighborhood becomes blighted or depressed? You have 1 property, so value drops on all 10 at once and maybe you begin to lose some of your tenants. All 10 single family units houses are not likely to all be in areas that become blighted.

I do agree that I need 10 loans for my 10 houses, and more money must be put down to buy 10. In that respect, you can get into the multi unit for less money down. Often your interest rate is higher though. We usually find that rents are lower in multi family complexes and often it can become fixed (hard to raise with tenant squabbling).

Here your rents are typcially higher on single family then on a 10 unit complex. (so you must carefully determine your rate of return on your initial investment on your 10 unit complex vs your 10 single family properties.) On the multi unit your market value is based on your rents coming in. Your multi unit complex will not appreciate as quickly, nor sell as quickly, as 10 single family rental homes. They are located in areas with owner occupants (helps keep your value up). And owner occupants and investors can buy them.

I love dealing in investment real estate and am happy to discuss it anytime.

Every investor is different. And each investor must determine what type of property suits his wants, needs, and goals. I do not advocate that a novice investor begin their real estate investing career with their first purchase a multi unit complex.

I have found that multiple single family properties work best for me, as I don’t care to have all my eggs in one basket.

Sean, Thanks for your point of view. – Sandy Shores, Melbourne FL REALTOR