Weighing Single-Family Houses vs. Multifamily Apartments

By on June 26, 2015

With the property rates falling down in the pit and ease in the rules and regulations of lending the credit, buying property has become a very nice and smart investment. But, in which type of property one should invest? Whether to buy single-family property or multi-family is actually a question of debate. So let’s weigh on against the other and understand what best can both offer to the buyer.

The Rental Pool
With the change in current economic situation more people are able to afford an apartment rather than a single-family home. Many people are down-sizing from personal homes to apartments with many facilities and with easy access to medical and other facilities. On the contrary multi-family apartments are hard to sell as compared to single-family home.

Management and staff
Since multifamily complexes have their own maintenance staff responding to the family need generally takes significantly less time to respond then it takes in the case of standalone home/apartment but the bigger picture shows that the overall expense to maintain the single unit in the multifamily complex is approximately same as maintaining the standalone home.

Another important point is the requirement of repair and maintenance to keep the individual unit in working condition in multifamily complex.

Also the idea of maintaining the multifamily complex individually is not an idea to consider because generally all the fittings and equipment differ from apartment to apartment.

Managing the cash
If you are having a hard in making the decision the cash inflow may make the decision for you. In multifamily complex if some residents fail to make the monthly payment you still have the stream of cash flowing towards you but in case of single-family apartment if the resident fails then you have to use your personal funds for your other expenses.

Residents with Indiscipline

Everyone is bound to face these residents. But, in case of standalone home such residents may be in conflict with neighbors or someone else but such residents in multifamily apartment will create trouble for other resident and any good resident will leave the apartment rather than renewing the lease.
Both single-family and multifamily properties have advantages and disadvantages and which property you choose to buy is entirely up to you.

Read more at Online Property Management Software

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