Single Family Dwellings vs. Multiplex investing

Single Family Dwellings vs. Multiplex investing

– I’m often asked if I should invest in single family dwellings or multiplex. It comes down to the
investor’s preference. But before we talk about that, let’s look at the pros and cons of single family dwellings, and the pros and cons of multiplex. (electronic static) The pros of single family dwelling? Well, there’s a higher demand for it. And there’s a yard, it’s
easier to buy and sell. Generally it’s higher cash-flow because the utilities are
passed on to the tenant. What are the disadvantages
of single family dwelling? Number one is the maintenance. The maintenance fees tend to be higher because your handyman has to go from one property to
the other, higher fees. Number two is the vacancies. If you can’t fill that vacancy, there’s no cashflow that month. Number three the financing
can be more challenging with single family dwelling
in relations to the multiplex which is based on the building itself. What are the advantages of a multiplex? Number one is the economy of scale. You’ve got one roof, one boiler to fix. Also the vacancies, if
you’ve got one vacant unit in a ten unit building,
you’re still getting 90% of the rent checks coming in. There’s also the financing. It’s based on the building
rather than on your income. Number four, you can use a great strategy, a tool, called vendor take back which allows you to finance a certain portion of the building. Alright, so you’re not too sure whether you’re to choose single
family dwelling or multiplex. It comes down to how you want to invest. There’s four elements to that, cashflow, appreciation,
tenant profile and vicinity. You generally can have
appreciation and tenant profile but maybe not cashflow and vicinity. So keep in mind, think about
what is most important for you. Is it the tenant profile and the vicinity? Or is it the appreciation or the cashflow. Chose one or two and focus on that. So I hope this has helped you decide whether to invest in single
family dwellings or multiplex. If you’re looking for more information check out my website, If you like this video, share it, click like, leave comments below and subscribe to my channel, thanks. (folk music)

1 thought on “Single Family Dwellings vs. Multiplex investing

  1. Excellent info. Love easy to remember points explained well with clear examples. You are very good at this — ever thought of becoming a teacher, or coach? I'm in! Cheers.

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