Here is another Scenario for better investing folks:
Investor #1 Buys single-family houses, because he figures since he has one of his own then he can fix any repairs. But over time and after he has 4-5 houses he figures he can’t keep up with the work and gets some one to manage them after all.
The problem I see and have experienced with single-family homes is that the tenants always say they want a home, but then later you find out they don’t want to do yard work, and expect you to do everything. Plus if the property becomes vacant you are stuck with the mortgage and repairs, until you get it rented again. On average you can figure $2,000 – $3,000 of loss until the property is rented again. IE: mortgage, repairs, utilities, TIME.
Investor #2 Investor likes multi-family homes.
Disadvantages: if you don’t do good screening of your tenants they can fight and be very rowdy, which then you get calls and complaints of the tenants next door making to much noise or a noisy animal.
Advantages: if one tenant moves out you still have the other tenant to help off-set the mortgage that you are now responsible for. Also since there is a tenant next door, you will have less break-ins when your one side is vacant. Maintenance is the same and some say doubled, but when you buy multi-family usually you get two homes for the price of one single home.
Note: If you look at the people that are making the big money in real estate (Trump, Kiyosaki) they are always into multi-family and large apartment complex’s or condo living. Where do you want to be??????????
These are all our opinions and what we have experienced over the last 10+ years.
Take care and Happy Investing
Johnny and Cristi Jackson