There are a number of reasons why investing in multi-units is much better than single-unit homes.
Not only does this group of people invest in paying off their individual mortgages together while also paying the landlord money for maintenance.
Of course, the most obvious advantage of opting for investing in multi-units (apartments) is that you get wealthier much quicker than any other form of real estate investments.
With that said, here are 3 more advantages of owning multi-unit buildings over single unit houses:
#1: Greater cash-flow
As mentioned earlier, there is more amount of money flowing from owning a multi-unit building as opposed to the single unit home. Think about it: if you lose the family renting out your single unit home, you’ve lost 100% of your income but that’s hardly the case with multi-unit buildings.
#2: Economies of Scale
Now let’s say you have five single unit homes as opposed to a multi-unit building with the same number of families under them. If you have to repair the roof, for instance, you’ll have repair six of them for the former but just one for the latter, which, of course, costs less to repair. This is why experts believe that economies of scale is in favor of multi-unit buildings.
#3: Less competition
Most real estate gurus will tell you that it’s rather easy to flip single unit homes and which is why there is more competition if you want to get involved in this type of investments. This is why the smart investors will not only have multi-unit homes but also single units ones in their portfolio.