Single-Family vs. Multi-family Homes: Which One is Best For You? If you are asking yourself this question today you are probably future a first-time homeowner, a beginner real estate investor, a new real estate sales licensee, or you got some money you to try a new field to inject some capital that can generate you a large marge of profit.
So today you’ve decided it’s time to buy and sell, to fix and flip houses or simply to build a new home, either to work with a real estate developer. You may need to consider hundreds of different things, but one of the earliest decisions you will be making is deciding between a single-family or multifamily home: Which One is Best For You?
A single-family home is just that—a home that is designed and built to accommodate a single family. These homes are typically stand-alone buildings that are not connected to any other condominiums or apartment complexes. In most cities, city building codes may require that houses built on certain plots of land be single-family dwellings.
This type of home is designed and built to accommodate several families or individuals within the same structure. The most common examples of these types of structures are duplexes, split-level homes, or homes that have attached apartments.
As with single-family homes, many city building codes require (or restrict) multi-family homes from being built on certain parcels of land. If you are looking to build, be certain you are familiar with the building codes for your particular area before you actually build.
- Your Lifestyle
For many people, living in a single-family home provides peace and quiet that a multi-family home cannot. If you are a homebody who is looking for a place to call your own, explore single-family homes in detail. On the other hand, if you are looking for a more lively environment with plenty of neighbors to meet, a multifamily home may be right for you.
- Rental Income
A great first home for many young professionals is a multi-family home. By purchasing the entire building, you can live in one part and rent out the remaining portion to help cover your living expenses. If the numbers work out, you may even be able to cover the entire cost of your mortgage payment and homeowner’s insurance with the rental income. If this is the case, buying a multifamily home can be a fantastic way for young professionals to get a start in the world.
How frequently do you have visitors? As you grow older, letting friends from college crash on your couch can lose its appeal. Many older, well-established couples will consider multifamily homes for this very reason.
- Who’s to target with your business strategy?
If you want to become successful in real estate investor or to become a successful real estate business professional, you can’t go after every home buyer and seller. You have to target a few specific real estate niches in which you’ve proven an ability to close deals.
As a real estate niche is a target audience, property types, and price ranges, in a specific geographic location where there is a large demand either to buy, sell or rent a piece of real estate that can be land, properties, mobile home, a marina for boats and more. Your job is to serve this niche by creating offers that fit the demand of this specific community or niche.
This question doesn’t matter if your strategy is to invest your local real estate market, the only choice you have in this scenario is put on the market offers that fit your local geographic real estate niche needs, and you will start making money quickly.
This question is important if you choose a real estate business person or professional with a certain taste for a specific strategy that can build a real estate portfolio, become a real estate mogul, create a property management company, establish yourself as long-term real estate brand and you are ready to invest in any location that meets your business strategy criteria. You should, in this case, choose a multifamily home real estate as your target and specialty and move your capital in any niche where the demand for multifamily is high and start doing business there.