As a seasoned real estate investor in the Detroit, MI area, I often hear this question, especially from people looking to get started with real estate investing … Is single-family or multifamily real estate a better investment?
To answer that question, let me walk you through my own journey from starting out with single-family rental properties to now owning large multifamily real estate properties.
The WORST number in business is ONE …
ONE sales person on your team …
ONE traffic source for leads …
And ONE customer/source of income.
“It’s just as much work to build a SMALL business as it is to build a BIG BUSINESS … but a BIG BUSINESS comes with far more rewards.” – Stephen A. Schwarzman / founder of Blackstone
My first business as a Registered Dietitian in Telehealth made multiple 7 figures … but it was more like a JOB than a BUSINESS.
It was dependent on ME and MY PRODUCTION … If I got sick, took a few days off, or traveled … the business revenue declined.
This is what lead me to investing in multifamily real estate in the Detroit, MI market.
Learn to work on growing your business, not IN your business
Multifamily real estate works for you 24/7/365 and does NOT require you to work IN the business like most small businesses do.
When I started investing in real estate, I made the same mistakes and thought too small … I bought a bunch of houses and duplexes.
While they were a good place to start, a 2-unit property does NOT produce enough revenue for you to go out and hire a manager to run the business for you.
So, you’re stuck working IN the business vs. ON growing the business.
Again, this is a GREAT place to start and learn the business.
But, if you want to grow from working IN the business to OWNING a business you need SCALE.
Now, I own a 42-unit, 56-unit, and a 100-unit – All of which produce enough revenue to hire MANAGERS to run the apartments.
There is NOTHING wrong with starting small … But you need to ask yourself: Do you want to own a JOB, or a BUSINESS?
Are you working ON growing your business, or are you PLAYING SMALL and stuck working IN the business?
Is your money in an asset working harder for YOU than you had to work for it?
Single family or multifamily real estate?
Which option is best for YOU?
Ultimately, only YOU can answer that question based on your unique skills and investment goals.
But if you want to learn from others who have walked in your shoes and been where you are right now, subscribe to my YouTube channel and follow along as I share my real estate investing journey.
Or, reach out to us at Stephan Group Real Estate Brokerage. We’re here to help you reach YOUR real estate goals!
