Hi Everyone,
Hope all is well on your end.
All new real estate investors want to figure out what type of property they should buy as their first rental property.
Over the years, I have seen people buy as their first rental property:
- single family homes
- duplexes
- triplexes
- multi-unit buildings
- condos
If you are an eager new real estate investor, you are probably ‘dying’ for me to tell you what the answer is.
The answer is….
…there is no right answer!
If you as a new investor posses the necessary motivation and skill, you can successfully own and manage any type of rental property.
Which is the easiest to own?
In my opinion, the easiest property to buy and manage as your first rental property is a single family home. By definition, a single family home is any type of dwelling in which one and only one family is residing in.
Why are single family homes the easiest?
Once again in my opinion, single family homes are the easiest to purchase and manage based on 2 major factors.
1) Cost
The cost to purchase a single family home as a rental property is generally cheaper than it is to purchase a multi-unit building. Due to the fact that a multi unit building contains multiple units, the price to purchase the building is often higher than the price to purchase a simple single family home.
Because the price to purchase a single family home is cheaper, the barrier of entry is lower. Therefore, more people are able to get started in real estate investing by purchasing their first rental property.
2) Management
Generally, single family homes are easier to manage than multi-unit buildings. It is easier to manage one set of tenants, as opposed to a large number of tenants. This is especially true for new real estate investors. When you are new and just starting out, you won’t know how to manage tenants very well. Managing tenants is something that you become better at with the more experience you have as a landlord.
So there you have it!
Single family homes are the easier option for new real estate investors when compared to multi-unit buildings. However, as mentioned above, if you have the necessary skill, desire and FUNDING not to mention, you can successfully purchase and manage even multi-unit buildings.
Best Regards,
Neil Uttamsingh
ps: First Rental Property will be making a HUGE announcement later this month. Check back in often for the announcement!
