If you want to get started buying rental properties as a business investment, your first decision will be whether you want to invest in single family homes or multi family homes. At first glance, you may think a multi family unit is the way to go, since you will bring in rent from multiple renters as opposed to just one, and all of your maintenance issues will be located at one site. However, there are several reasons why you should consider single family homes instead. 

Lower Renter Turnover

The demographic who tends to rent single family homes is older, wealthier, and more settled than those who rent units in multi-family homes. This means that they tend to stay in their rental unit for a longer period of time. Often, families will have children and stay in their single family home, whereas renters in multi family units may move out any time a significant life event, such as marriage or children, occurs. 

This means you will be spending less time trying to find quality renters and more time collecting a steady stream of rent from trustworthy renters. 

Less Maintenance 

Besides higher quality renters who may be more likely to take care of your investment renting single family homes, you will also have less maintenance simply because you have fewer areas to fail. For example, instead of three kitchens that may have plumbing issues, you will only have one. The same goes for attic spaces, crawl spaces, and number of windows.

Overall, you will simply have less maintenance. Many owners of single family units find they can manage the property on their own, hiring professionals only for specific tasks, whereas owners of multiple units often have to hire a property manager to manage and fulfill the maintenance requests. 

​Higher Resell-ability 

Eventually you may want to sell your rental property. Most multi family properties will only be attractive to other rental-income investors. But single family homes can be sold for rental income or for individual family use. This makes the number of potential buyers for your property increase significantly, meaning you may get a better selling price and you may sell more quickly. 

There are benefits to owning both single family and multi family homes for rental income. However, in most cases, single family homes for sale can provide a better value for your initial investment and allow you to earn a more passive income than multi family homes.