INVESTOR REVIEW
Pick the Property That Pays HERE’S HOW TO DECIDE WHETHER SINGLE-FAMILY OR MULTIFAMILY ALIGNS WITH YOUR AMBITIONS.
GAYLENE ROGERS LONERGAN
I nvesting in real estate is a great for millions of investors in America. It’s relatively easy to get started, provides way to grow wealth through passive income, which is a key motivation an element of protection against inflation, and grows over time. Choosing the type of real estate that meets an investor’s goals is not always an easy task. Let’s take a look at two types: single-family and multifamily. A single-family real estate property houses one family. Most investors purchase them to make money from renting or to renovate and sell at a profit. Multifamily real estate encompasses buildings that have more than one living unit. This class includes duplexes, apartments, condos, town houses, mixed- use properties (which house businesses as well as living units), and others.
MULTIFAMILY VS. SINGLE FAMILY Is a multifamily investment better than a single-family house? Although single-family investing can have a lower initial cost than multifamily investing, it typically provides lower cash flow and takes longer to grow a portfolio. When determining the best real estate investment type, consider these six questions. 1. HOW MUCH MONEY IS AVAILABLE TO INVEST? 2. HOW MUCH TIME CAN BE DEVOTED TO THE PROCESS? 3. FULL-TIME INCOME OR SIDE HUSTLE? 4. WHAT PROPERTIES ARE AVAILABLE IN THE MARKET? 5. WHAT EXPENSES ARE INVOLVED? 6. DOES THE INVESTOR HAVE GOOD CREDIT OPTIONS?
Like all forms of investment, there are risks and benefits to consider when choosing the type of real estate that will best meet specific needs. WHY CONSIDER MULTIFAMILY INVESTING? When a multifamily property is chosen well for investment purposes, the passive monthly income exceeds that from a single-family unit and provides a greater tax benefit. The potential tenant pool is also greater. Multifamily real estate is usually more stable during economic upheavals, and over time it tends to appreciate in value. BENEFITS OF MULTIFAMILY INVESTING The opportunity to scale the investor’s income is a key benefit. One multifamily property can yield greater cash flow
64 | think realty magazine :: july - august 2025
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