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How to Choose Between Single-family or Multi-family House for Long Term investments.

Entering into the real estate market requires time and monetary commitment. Depending on the purpose
for purchasing rental property determines whether one should invest in a single family or multi-family
dwelling. In either case, one should prepare short or long term goals, be cognizant of his or her financial
health and monetary comfort zone, and conduct a comparative market analysis before considering a real
estate investment.

A beautiful single family in Augusta showing the front view.

Short Term Versus Long Term Investments

For investment purposes, a multi-family dwelling provides the owner with more potential rental income
than a single family dwelling. However, if the purpose is to claim the new location as a future domicile,
then investing in a single family dwelling provides the buyer with time for relocating. One should be
aware, however, that rentals are not eligible for homestead exemptions. With the exception of Delaware,
Pennsylvania, New Jersey, and Rhode Island, all states offer some type of homestead exemption for
primary residences. As a result, if changing one’s domicile is part of the long-term goal, then considering
the purchase of a single family for a temporary rental, until one is ready to change domiciles, may prove
advantageous.

Investment Considerations

One must be prepared for the initial rental preparation. Plumbing and sewage lines must be in working
conditions to avoid impending disasters. Adequate electrical service and outlets, in combination with
internet access, attract financially secure tenants. If one depends on registered, licensed, and insured
contractors to provide the necessary workmanship, one must also be prepared for delays in the delivery
of goods, inspections, and completed work orders. If one’s finances are not be stretched beyond his or
her monetary comfort zone, then time may present the only obstacle. Visit our listings to learn more about our deals

An image of plumbing fixtures of a house.

Location Versus Location

Any real estate investor must consider location. One should look at the demographics of an area, the
percentage of violent versus non-violent crimes committed in an area, and the future plans for
development of any surrounding areas. Usually the rating of the local high school will also provide insight
into the stability of the surrounding communities.

Consult A Reputable Agent

Before making an investment, one should consult a licensed and experienced real-estate agent familiar
with area rentals. The agent should provide information regarding long term versus short term available
rentals. In addition, if there are deed restrictions, the agent should provide the prospective buyer with the
necessary information. Contact us here at Central Properties Group, we have the reputable Agents that can help you. You can also contact Auben Realty For more real estate deals

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