Are multi-units or single-family houses better to manage in Warner Robins Georgia
Real Estate investors argue all the time about which is easier to property manage, Multi-unit or single-family houses. The winner of this agreement is in the eye of the investor. Warner Robins Georgia is full of both multi-unit apartments and single family homes that stay rented. What question do you ask to decide which is better for you to manager?
Will I manage the property myself?
Managing multi-unit rental properties in Warner Robins Georgia can be easy because all the units are in the same location. There no running all over town from one unit to another. There can be one master account for utilities and power if need be also. On the other hand, multi-unit rental properties can get pretty big and have a lot of units. This makes managing a full time job. Tenants of apartment type properties also don’t do their own maintenance. This can be good if you’re worried about tenants tearing up the unit, but this means you need to be on standby for all maintenance issues (or have a handyman on standby), no matter how small.
Managing single-family properties are the opposite of multi-unit properties. Although the houses may be in the same general area, rarely are they on the same street. This means more driving to fix issues at multiple units. The good side is that tenants of single family houses are usually more mature and know how to (and many times like to) fix small issues like faucets, lights or outlet plugs. If you’re not a “spring chicken”, this may be a factor to consider.
Is my investment property near me?
The driving time to get to your Warner Robins Ga. rental property is not much of a factor at this point because you would have to drive for either case. The part that can be considered is when you get up to a large number of rental units.
If you have to depend on a property manager for single family units, there can sometimes be an issues trusting your manager to keep up with a lot of single houses. Most managers of single family homes are also real estate agent and make the bulk of their income from selling houses, not watching them. This can cause problems receiving rents and getting accurate reports on the condition of your Warner Robins rentals.
Multi-family units of fifteen (15) or more many times have an on-site manager that is dedicated to the entire property. This make out of town landlords more comfortable, knowing they don’t have to chase down the manager.
What is it going to cost?
Multi-unit rental properties are going to win the fight here. Multi-unit housing is designed to be put back in service with cheap, fast supplies that can be bought in bulk. Every unit looks exactly the same, so a smart property manager can buy 25 ceiling fans and a large roll of carpet on sale with a bulk discount and have them on standby over the next year. All expenses are divided by the units in that building, so cost per unit is much cheaper.
Putting Warner Robins single family houses back in service after a tenant moves out is just like anywhere else. While most single family houses can be repaired with supplies from the local builder supply shop, it is still more costly than a multi-unit property sharing the same roof, stairs and other amenities. Single family houses are more unique and are harder to standardize. Some flooring may be used in multiple houses, cabinets and faucets, for example, may not look the same in each house unless you rehab each house to look the same as you acquire them. That can cost more than it’s worth.
What about resale value?
Warner Robins has one of the best markets for single family housing around. The same house anywhere else can cost 20-50% more. That means that getting into a single family rental property is a little easier. But what happens when you are ready to sell your Warner Robins rental House? I think is where single family houses shine.
A single family house can be sold to anyone that is interested in buying; homeowners, landlords, investors, etc. Multi-unit rentals are only sold to other investors. This restricts your buyers pool. If you decide you don’t want to sell your rental house, but do need some cash, there are more lending programs for a single family house to draw from. Borrow from the house as a single unit or, if you have an LLC, borrow from the entire portfolio.
Multi-unit properties are strictly for commercial use and lending. You can borrow from them just as easy, but the process is different and there not quite as many options. Also, if you decide to sell just enough units to pay of the rest and enjoy the cash flow, you can’t. Single family units can be sold separately.
Hope this makes your choice easier. Good Luck