Advantages of buying a Multi-family Home over Single-Family Home as a rental property.

Advantages of buying a Multi-family Home over Single-Family Home as a rental property.

If you are investing on a rental property or buy and hold, the multifamily home always have advantage over buying a single-family home and renting it out. So here are some advantages of buying a multi family home over a single family home.

As you know, a multi family home has more doors means more tenants. So let's talk about the purchase. When you buy a single-family home, for example, which has one door and you buy a duplex, triplex or fourplex, you don't pay the four times of the value or buying a duplex two times of the value. Yes, it is a little more but not that much. So compared to you, buying 10 single-family homes to a 10-unit building is much cheaper. Then the maintenance. If you buy ten single family homes in the ten different parts of the town is hard to go collect rent or for the handyman to check on the properties and so. It is very hard. When you have even a two unit duplex or fourplex or even ten unit building, it's much easier because it's in one place for the repair and collecting rent.

And then lastly, it's very important that when you don't have a tenant, for example, you're evicting a tenant and you're getting a new tenant and the unit is vacant. What happened in a single family home? You don't collect any rent, you lose that money for that month. But on the same side, on a four-flex, for example, if you have even one unit vacant, you still have tenants on the other three units. So if you have a mortgage to pay, you don't have to pay from your pocket because the other tenants compensate for those expenses.

So when you want to buy a rental property, it's always advisable to buy a multi-family property. Two, three, four units that comes under residential and from five units and plus it goes to the commercial, designed as a commercial property. So either way, multi door, multi profit, go for it.

Hopefully this information will help you buy the next property. Give me a call if you have any questions. With our experience, we can definitely help you guide you through the investment purchase. My name is Shawn Bhakta from Remax Presidential. Glad to help.