If you’re a new real estate investor, it can take time to decide whether it makes more sense to choose a multi-family or single-family investment property. Here, Nick Debeyiotis explains how to decide which type of real estate investment is the best choice for your needs.
Table of Contents
What’s Your Work Situation?
Dealing with issues from several tenants can be far more tiresome than dealing with issues from a single-family property, according to Nick Debeyiotis. While a multi-family investment can be far more profitable than a single-family investment, you’ll also need to put more work into repairs, finding and keeping tenants, and working to collect payments each month. If you work a full-time job outside of real estate investment, you may find that it’s difficult to keep up with all the needs of your tenants as well as keep up with the demands of your job. If you have a non-traditional job (especially one that allows you to make up your hours), it may be easier to manage the property independently.
Are You Settled In The Community?
Considering your relationship with people in the community may help you decide what type of investment property is the right fit for you. If you already know many people in your community, you have an easier time finding tenants and working with contractors who can help you with repairs. If you’re newer to the community, you may find that it’s a better move to start with a single-family home until you get to know the people in the community and become an established investor, according to Nick Debeyiotis.
Can You Hire a Property Management Company?
It can be difficult to deal with all the issues that come with having a rental on your own, and it can be far easier to manage if you have a property management company that can handle the daily ins and outs of managing your tenants’ needs. If you choose to invest in a single-family home, you’ll likely find that it’s far easier to deal with the needs of a single-family than several families.
What Are the Ages of the Properties You’re Considering?
Whether you choose a single-family or multi-family home, older buildings tend to be more high-maintenance than newer buildings. You may find that it’s easier for you to manage a newer multi-family home than it is to manage an older single-family home. Talking with previous owners about the work done to the property can help allow you to figure out what type of investment is the best fit for your needs.
