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Which is best? Single Family vs. Multi Family property investment

I loved playing Monopoly as a kid and still like playing it as an adult. I find that Monopoly brings out the best (and worst) in people! I'm super competitive at most things I do so once I roll those dice you better get ready for a challenge!

One of the interesting things in Monopoly was the concept of houses and hotels. Once you owned the land, you could purchase and place houses or if you had enough, you could place hotels on the land. Houses always paid less than hotels and the costs were fairly linear.

This brings me to the blog post today of comparing Single and Multi Family homes. I own a mixture so have a perspective on both. A Single Family home is, as the name implies, a sole structure to house one family on one lot of land. A Multi Family home houses multiple families (people) on the same lot - a duplex, triplex, fourplex and so on are considered multi family. Even a 100+ apartment building is considered multi family. For the purposes of our discussion however I will be talking about 1 - 4 units as that's what we mostly buy.

Some of the investors I work with will only buy single family and other will only buy multi family so there's no hard and fast rule about which is best. It really depends on your profile as an investor and what you are looking to achieve.

Here are, in my opinion, the pros and cons of each type of prop