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Buying Single Family vs Multi-Family
(SFH vs MFH)
For all you future and current real estate investors
Buying Single Family vs Multi-Family
(SFH vs MFH)
For all you future and current real estate investors
As an owner of a SFH, I am a bit bias
The simplicity of one tenant per property
And the income level of tenants looking for single family homes
Has always been attractive to me
The simplicity of one tenant per property
And the income level of tenants looking for single family homes
Has always been attractive to me
Over the years I have learned that these tenants are a double edged sword.
They get better jobs, get married, etc. which is great.
This leaves you with a vacancy however, which is not great.
They get better jobs, get married, etc. which is great.
This leaves you with a vacancy however, which is not great.
This brings us to the first benefit of MFH
When you have a vacancy in your SFH
you are receiving 0% of your rental income
When you have a vacancy in your SFH
you are receiving 0% of your rental income
If you have a vacancy in your Multi- Family Home
You still have other units that can help you cover monthly expenses
You still have other units that can help you cover monthly expenses
This is very helpful!
we have been able to re-rent within one month
But missing 0 months is alot better than missing 1 month.
we have been able to re-rent within one month
But missing 0 months is alot better than missing 1 month.
If you owned a 4plex
one vacancy means you are still getting 75% of your rental income.
one vacancy means you are still getting 75% of your rental income.
This means that your MFH can continue to help you cover expenses while you find a new tenant.
If you bought correctly, you may even be profiting with vacancies.
If you bought correctly, you may even be profiting with vacancies.
The second thing I like about MFH vs SFH
I actually learned from the current book I am reading.
I actually learned from the current book I am reading.
If you dont already know, I am an avid reader.
Currently reading “Investing in Duplexes, Triplexes, and Quads” by Larry Loftis.
While its not my favorite book,
it has been shedding light on some key differences between SFH and MFH.
Currently reading “Investing in Duplexes, Triplexes, and Quads” by Larry Loftis.
While its not my favorite book,
it has been shedding light on some key differences between SFH and MFH.
The biggest thing I have realized so far is:
a SFH and MFH that are the same square footage
get very different total rents.
a SFH and MFH that are the same square footage
get very different total rents.
Here is an example:
A 2,100 sqft Single Family rents for $1600 per month
What would the Multi Family equivalent rent for?
A 2,100 sqft Single Family rents for $1600 per month
What would the Multi Family equivalent rent for?
If divided into 3 units, those 700sqft units could get 700-800$ per unit.
Thats $2100-$2400 vs $1600.
That is an $800 difference for two houses that cost nearly the same.
Thats $2100-$2400 vs $1600.
That is an $800 difference for two houses that cost nearly the same.
Lets say that each property has a $1200 mortgage note.
Would you rather have the SFH with $1600 in total rents?
or the MFH with $2400 in total rents?
Would you rather have the SFH with $1600 in total rents?
or the MFH with $2400 in total rents?
Thanks for checking out this thread!
Do you know any other benefits of SFH or MFH? Share below
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( & if you know of any duplexes or triplexes for sale in FL send me a DMhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">)
Peace & Lovehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🙏🏾" title="Folded hands (durchschnittlich dunkler Hautton)" aria-label="Emoji: Folded hands (durchschnittlich dunkler Hautton)">
Do you know any other benefits of SFH or MFH? Share below
( & if you know of any duplexes or triplexes for sale in FL send me a DM
Peace & Love
