Multifamily Vs. Single Family – Which Portland Rental Properties Should You Invest In 2021?
Are you planning on investing in Portland Oregon rental properties in 2021 but you don’t know if it’s better to invest in a single-family home or a multifamily property?
Real Estate investors have been debating multifamily vs. single-family properties for years. The reality is that both property types offer obvious advantages and disadvantages.
In this blog post, we will break down single-family rentals and multifamily properties so that you know which one to invest in.
Multifamily Vs. Single Family
Single-family rental properties are always in demand among renters because most renters like to have the ability to live in a traditional home with a front yard, back yard, and driveway.
With the growing demand for single-family rentals, it’s also important for you to know that it’s often easier to invest in single-family vs. multifamily properties.
There are also greater resale opportunities with single-family properties and they often have lower tenant turnover than multifamily.
What’s the downside? When there is tenant turnover, the reality is that your single-family property isn’t going to be earning any rental income every month until the vacancy is filled.
Contrast this to multifamily properties where one vacancy doesn’t mean a loss of revenue because the other occupied rentals will be earning revenue every month.
Single-family homes can also be more expensive to maintain than multifamily properties, especially if you own a portfolio of single-family homes. Why? If you have multiple properties that need work, you will have to hire multiple companies to work on your properties compared to hiring just one maintenance company.
Why Invest In Multifamily Properties?
In 2020-2021, multifamily properties are more in demand than ever before because many renters like the convenience and flexibility of living in multifamily vs. single family.
Multifamily renters like not having to be responsible for maintenance, they enjoy onsite amenities and the fact that most apartment buildings are closer to the city and their jobs.
It’s also important to note that as we mentioned above, multifamily properties are easier to scale than single-family, they offer higher monthly cashflow and are also in most cases easier to finance.
Which option is better? Ultimately the option to invest in multifamily vs. single-family is up to you but once you decide to invest in a property, your goal should be to hire a property manager in Portland Oregon to manage that property for you.
A property management company will save you the time, money, and hassle of managing your properties yourself so you can focus on enjoying passive income from your property.
Contact Rent Portland Homes – Professionals
To learn more about the property management services that we can offer you, or to get a property management quote, contact us today by calling (503) 447-7735 or click here to connect with us online.