SFH vs Duplex would be better (real estate, rental, insurance)

[pectin232]

Which one would derive a much higher income producing asset? A Single family home or a duplex with like 2 to 4 units in the duplex? Thanks

[Big TR]

Originally Posted by pectin232

Which one would derive a much higher income producing asset? A Single family home or a duplex with like 2 to 4 units in the duplex? Thanks

Seriously?

This question depends on about 15 different factors. Each scenario is specific to the purchase price, downpayment, rental price, annual maintenance costs, real estate taxes, insurance, etc.

The correct answer to your question: "It depends."

[denawilliams]

It will depend mostly upon your goals, plans, criteria, etc. Multi-family properties have the best opportunities for that immediate cash flow, but single family properties offer more reliable demand and appreciation. So it depends on what you want or need to do and how long you have. A single family home will not offer as much cash flow initially, but you would be able to build up more equity as appreciation occurs and as you pay the mortgage down. Eventually, you'll own the property and then it's all cash flow. Multi-family property prices are determined mostly from their rents. Rents do increase so both types do increase in value over time. But when housing is affordable to more people, rents go down and you have more vacancies. Houses appreciate and rental properties go down at that point. And vice versa. They are both good options for an investor over time if it's bought for the right price, with good terms, etc. Single family homes are easier to buy because multi-families usually require a little more capital. So a lot of people start out investing in single families and then add multi-families over time.