Single-family vs. multifamily rental properties—which gets you to financial freedom faster?
A rookie real estate investor is wondering what he should do for his first rental property. Multifamily rentals can help you scale faster and have more cash flow, but single-family rentals mean fewer tenants (and fewer headaches) with less management. Dave and Henry have invested in both and have a clear answer for which is the winner.
We’re back answering your questions from the BiggerPockets Forums. First, single-family vs. multifamily—if you’re starting in real estate right now, there’s one clear choice. Next, a young landlord just inherited a tenant who’s paying 50% below-market rent. Should he raise the rent and risk losing a 12-year tenant, or follow a much more “reasonable” strategy to get them to stay and pay a fairer price?
BRRRRing vs. house-flipping: let’s say you have $100,000 ready to invest, which option gives you a higher return? BRRRRing (buy, rehab, rent, refinance, repeat) means you’ll have a long-term rental after the rehab, but is a flip worth it for the instant payout? And finally, we do the thing you never expected BiggerPockets to do…we tell someone not to house hack (but here’s why).
In This Episode We Cover
Single-family vs. multifamily rentals, and which Dave and Henry would almost always prefer
BRRRRing vs. flipping houses: which is lower risk in today’s housing market?
Who should not house hack, and what you should do instead with your money
Raising rents on inherited tenants: the “stair-step” strategy that Henry uses
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1241
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