Single-Family vs. Small Multifamily: Which Should You Buy?

Single-family rentals are easier to finance (Fannie/Freddie up to 10 properties), simpler to operate, and most liquid on exit — but typically deliver lower cash flow per dollar.

Small multifamily (2–4 units) often produces 30–50% better cash flow, qualifies for residential financing, and reduces vacancy concentration risk.

5+ unit multifamily moves to commercial financing (DSCR, balloon-loan structures) and dramatically different operations. Choose based on your skill set, not just yield.