Forbes Blog – Should You Invest in Apartment Buildings or Single-Family Homes?

POST WRITTEN BY

Helen Chong

Helen Chong is the founder and CEO of Haylen Group and an official ForbesSpeaker.

I speak with many investors who are interested in investing in single-family homes. Many investors find increasing their portfolio beyond five-unit apartment buildings a bit daunting. However, once you understand the differences between one to four units compared to five-plus units, you will understand why I am so excited to invest in five-plus-unit apartment buildings.

There isn’t a right or wrong answer regarding which property type you should invest in. There are a few factors that can influence your decision-making process. This article is to educate you about the differences so you understand how to evaluate the opportunities as they present themselves.

Financing Differences

In the financing world, one-to-four-unit residential properties will follow the Residential Lending guidelines while five-plus-unit apartment buildings follow Commercial Lending guidelines. Not every bank can do both types of financing, so you have to be sure to find the right lenders through recommendations by a real estate professional. Below is a table summarizing the major differences: Read More on Forbes.com