Single family vs multi-family property? Which is the better investment choice for you?
At our monthly RealWealth events, we are often asked by new investors how they can find multi-family properties.
I ask if they are a new investor, and often times they are. I then ask why they want multi-family as their first investments.
The answer is usually that they went to a class and learned about it. Mainly, that financing is easier to get on multi-family vs single family because the bank is qualifying the property not the person. They also say there’s economies of scale because many units are under one roof vs spread out. And finally, they say the equity can increase dramatically when rents are raised.
All of those things are correct, but let’s look a little closer at the pros and cons.
My guest today has owned both single and multi-family properties. Today he’s going to share which ones performed better over time, and you might be surprised at what you hear.
Keith Weinhold is the founder of Get Rich Education and he’s also a contributing Writer at the Rich Dad Advisors blog. He’s been an active income property investor since 2002 and has authored the Amazon bestseller, 7 Money Myths That Are Killing Your Wealth Potential (2017).