Why Multi-family Properties are Better than Single-family Investments

If you’re considering a rental income property for purchase, but you’re not sure whether to go for the traditional, single-family investment (i.e., homes, duplexes, condos) or to opt for the larger, multi-family complex, you’ve come to the right place. Here are the top five reasons why the larger investment may be worth more to you in the long-run:

  1. Multi-family properties allow for more tenants, hence the name: multi-family. This, naturally yields itself to greater income potential. While there is also greater potential for issues, proper property maintenance and management can reduce this risk.
  2. Apartment complexes are where young tenants are moving. The younger generations desire apartment living. They want to rent, not own; they want to be managed, not manage; and they want ease of access and use. In fact, Generation Y has become affectionately known as Generation Rent in many parts of the world.
  3. Baby Boomers, now the second largest generation, are also moving into smaller living communities, downgrading their living desires in response to having an empty house. A wonderful turn of preference for multi-family owners is the fact that a considerable amount of Boomers are shunning retirement communities in favor of properties that offer convenience and community, according to a recent report in the Business Insider.
  4. While a single-family home can definitely be managed by a third-party, a multi-family property lends itself more easily to on-site management of trained professionals.
  5. On a per-unit basis, the multi-family investment is typically less expensive than a single-family investment. You are purchasing more units, that will almost always individually equal less than the total of an investment on just one single-family property. The investment, therefore, lends itself to greater cash flow potential.

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