Are you looking to buy some property, but you’re unsure whether to get a single-family or a multifamily home? Whether you’re a first-time homebuyer or an investor, it’s important to know the differences between these types of properties.
If you’re thinking of buying some property soon, keep reading our article. We’ll go over the pros and cons of both single-family homes and multifamily homes and what the main differences are between these two types of properties so you can pick what’s best for your real estate needs.
What’s the Difference Between Single and Multifamily Homes?
When comparing single and multifamily properties, the main difference is how many residences are meant to live there. Single-family homes are meant to have one family living there, while multifamily homes have multiple units for more than one family to occupy.
If you’re looking to buy one of these homes for investment purposes, then there are some other differences to consider there as well. Single-family homes tend to be more affordable, have less of a turnover rate, and are easier to sell should the investor want out.
Multifamily homes have the potential to make more money, have fewer vacancies, and the price can be controlled by the landlord, as opposed to outside economical factors. We’ve gone over each type of property in more detail below.
All About Single Family Homes
Single-family homes are the most popular choice among home buyers and new real estate investors. When you think of one of these homes, you probably imagine a traditional house, but some of these properties are attached to others, making it confusing to tell the difference. Learn the differences when you’re looking for rent so you’ll be able to make a better decision.
That’s where the ownership comes into play. For example, if you purchase a townhouse or condo, you’re still buying a single-family property because you own the individual unit. If you purchase a whole condo building, it’s considered a multifamily property.
Investors who buy these homes should look into single family property management companies to handle the extra responsibilities, including leasing, handling tenants, collecting rent, and even maintenance.
All About Multifamily Homes
When you think of multifamily homes, you should think of duplexes, triplexes, quadplexes, or even apartment buildings. The thing that makes a multifamily home suitable for multiple families is that each unit has its own entrance, kitchen, bathroom, utilities, and address.
As we mentioned above, ownership of the property makes things more complicated. Most people who own multifamily homes are investors, or sometimes they’ll occupy one unit of the property and rent out the others.
Since multifamily homes are shared among neighbors, they’ll often have shared common areas and sometimes amenities, but this isn’t always the case.
Multifamily properties are more popular for experienced investors because they can yield more of a profit. An investor who owns a multifamily property will have various sources of controlled income even if there’s an occasional vacancy.
Stay Up-To-Date on Real Estate Trends
Buying real estate is one of the most important purchases you’ll make in your life, so it’s important to be informed before making any decisions. Knowing the difference between a single and multifamily property can ensure you get a property that meets your specific needs.
Hopefully, we taught you what the differences are between a single and multifamily home. If you found this article helpful, be sure to look at some of our other great business and home content!