Planning on investing in rental properties?
If so, one of the decisions that you have to make is if you’re going to have to make is if you will invest in single family or multi family rental properties.
In this article we will break down the differences between the two types of rentals so you will know which investment will be the best one for your portfolio.
Single Family Vs. Multifamily Rental Properties
Even though the conventional choice in Real Estate investing is to buy a single family home, the reality is that purchasing a multi-family rental property is the better option for you to make because:
· Stable income – If one of your tenants moves out if you own a duplex, fourplex or triplex you can always fall back on one of your tenants to cover your costs until you can rent the vacant unit again.
· Efficient – With a multi-family rental property you have the unique ability to handle all maintenance and or repair issues at once compared to scheduling appointments with multiple renters who are living in the single family homes which you own.
· Popular – More tenants prefer to rent multi-family units versus single family homes because they don’t want to have to deal with the hassle of landscape maintenance.
Best Way to Save While Making Money
Another reason to consider investing in a multi-family rental property is the extra incentive that you can live in one of the units yourself while your tenants rents cover the cost of your mortgage, insurance and property taxes.
Easy To Get Started
If you’re serious about buying your first multi-family rental property and want to live in the duplex, triplex or fourplex you may be able to qualify for an FHA loan and pay only 3.5 percent down to get into a property.
What’s best of all is that the FHA also offers renovation loans as well if your property needs new carpentry or flooring when you move in.
To learn more about the benefits of investing in a single family vs. multifamily rental property, or to speak with us about our property management services, contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.