The traditional way of investing in real estate is through single family. In fact, at DoorInvestor, we all have gone through this path of investing at some point in our investment life:

• Save up for down payment
• Buy a house and finance with a mortgage
• Rent the house out and manage the property and tenant ourselves
• Hope we can repeat this by saving up another down payment…

While there is absolutely no problem with this type of investment style, we at DoorInvestor believe there can be other, and most likely “better,” ways to invest in real estate, and this is through Multi Family.

First of all, what is it about Single Family? The ability is scale is a major reason. Let’s take a look at the routine above, we ought to ask ourselves this question: Realistically, how many times can we repeat this in our life time? How quickly can the rent replenish our down payment account? What if a tenant moves out? These are all valid questions that we need to ask ourselves before we commit to purchase of a single family investment.

What about Multi Family? Is it the holy grail? Not necessarily, but it may offer competitive advantage from a different perspective. First, for the same trouble of sourcing for a single family and financing for a single family, you can spend the same / similar amount of effort and look for a multi family, which can provide multiple returns of income. Because there are more people paying your rent, the turnaround time to replenish your down payment account can be faster. And what if a tenant moves out? There are still other tenants in place to help with the rent and mortgage, so the risk is being minimized.

Two to Four (2-4) units is a great starting point if you want to get into multi family investing. These properties do not seem as “intimidating” as the 10+ units, and there are enough supply and demand out there to make it a relatively liquid market. Check out our Listing if you would like to explore this option further.