The pros and cons of single family vs. multifamily real estate investing.
One question I get asked a lot is, “Is it better as a doctor to invest in single-family rentals or multi-family properties?”
The truth is that there’s no perfect answer, and that's why I invest in both, but for different reasons.
Here are some pros and cons:
Single Family Residences (SFRs)
Multi-family Properties (Apartment Buildings, Two Units and Above)
There are pros and cons to both, which is why I like having both in my portfolio.
I've known real estate professionals who invest heavily in one or the other. Those raising money tend to lean toward multi-family properties for their ability to scale.
However, physicians usually have a different goal -- they want to simply find consistent sources of passive income to supplement or replace their current income without taking up too much time.
Anyone have a strong opinion one way or another?
Again, the answer isn't clear cut, but what I do know is that you can accomplish these goals with investing in either one or both. At the end of the day, I’m also looking for multiple streams of passive income and investing in both SFRs and Multi-family properties is my way of diversifying within the real estate sector.