In this Santé Realty Investments video, Jim Small talks about the hardest decision for new investors to make, “which investment is best, single family or a commercial property?”
When it comes to investing for the first time, there are a few things worth considering when you’re deciding on either purchasing a single family home and renting it out or investing in a multi-family commercial property.
Jim breaks this down in the video below, but we’ll give you a recap here:
Single Family:
- Buying a $100,000 home – in this situation you’ve decided to purchase a home that you will then rent out to one single tenant.
- Property damage – if the property gets damaged, the value of the property goes down.
- You are the sole owner – you bare all the risk
- Tenant occupancy – you either have a tenant or you don’t, this means you either have income coming in or you don’t.
Multi-family Commercial:
- Put down $100,000 – as an investment on a multi-family property, making you part owner.
- Property damage – you would bare a fraction of the risk, depending on how many other investors have gone in on the property with you.
- You are one of many owners – you take on less risk this way.
- Tenant occupancy – your property is continuously generating income, whether your occupancy is at 100%, 90%, or 80%.
Check out Jim Small’s video for a more in-depth look at what differs between a single family home and investing in a multi-family property.