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Single Versus Multi-Family Investments

Single Versus Multi-Family Investments
When it comes to investing in rental properties, the common question is: “Which is better, multifamily or single?” Now, first and foremost, you must have the funds to acquire a multifamily property, which can run into the ballpark of hundreds of thousands to millions of dollars. But, this aside, we’re going to assume that if you’re reading this, you’re considering a purchase of either a multifamily property or several single family homes. In this case, we’re going to provide a breakdown of the benefits of ownership of each option. We only present the benefits because you can assume the benefits of one do not exist in the other; hence, the comparison. Single Family Rentals The positives of owning single family homes are many. They are smaller properties, with less work and maintenance. Because of this, they do not require on-property management, which can instead be handled by an off-property management company or personally by the owner. Single family home owners benefit from lower taxes when compared with those imposed on multifamily properties. There is also a higher appreciation typically associated with single family homes. While multifamily properties can turn a significant profit over time, the flipping game is something to be reserved for single family homes. Probably the biggest selling point of buying a single family home is its selling point. Multifamily properties are large, more expensive, and reserved for investors. So, there isn’t going to be as large of a market as for single family properties, meaning a faster liquidation optio......
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The Real Cost of Losing a Tenant

The Real Cost of Losing a Tenant
If you’re in business, you’ve likely heard more than once that it’s more expensive to lose an employee and face the need to find a new one than it is to actively focus on retention efforts. It makes sense. You have a significant outlay to advertise the position, recruit, go through the vetting process, relocate the right applicant, train him or her, and invest in both salary and benefits. If you lose that individual, you lose not only all of that investment, but the time and productivity losses associated with a vacancy, as well as another round of the same initial investments to fill the position yet again. For this reason, wise companies make significant investments in their ongoing retention efforts. Multifamily apartment properties are no different. Think about it. To get a tenant in the door, you must advertise the vacancy, then you must vet and screen the applicants, which takes significant resources in including time, effort, and money. You then must have the unit move-in ready, which always requires at least a small investment. And the list goes on. Once that tenant is in place, if anything goes awry and he or she is no longer satisfied enough to stay the term of the lease or renew, you are now faced with all the related expenses of losing that tenant and replacing him or her, and according to research conducted by the National Apartment Association (NAA), those expenses can add up to a whopping $4,000 for each move-out. The mora......
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