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Monday, September 20, 2010

Investing In Multi-Unit Apartment Building Vs. Single Family

A bigger size property, however, doesn’t necessarily mean more risk. Losing one tenant in a single family will “hurt” you more than losing one tenant in a multi-unit apartment building property. This concept is called economies of scale where you get cost advantages due to expansion. It is smarter to invest your money into a multi-unit apartment building, since it will lower your risks and increase your chance of having extra cashflow each month to reinvest your money in other properties.
Well, it may be true, but you need some balls to jump into a bigger size property.
Ruthie




Some would recommend that you invest in a single family property while others will state that a multi-unit apartment building property is a better investment.

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