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  • Writer's pictureJivko Stefanov

Single-Family or Multi-Family Home? The New Jersey Realtor Weighs In

The Pros and Cons of single-family and multi-family investing, from a New Jersey realtors perspective

Single-family and multi-family homes are a bone of contention between many real estate investors; everyone has a different strategy. As a realtor in New Jersey and real estate investor, at Tverdov Housing we’re here to tell you the pros and cons of both single-family and multi-family homes.

Single-Family homes

The Cost

We should start with the basics and say that single-family homes have a more accessible barrier to entry compared to multi-family homes. This is their big advantage as they are more affordable for many investors. From experience as a realtor in the New Jersey market, many beginner real estate investors start with single-family homes.

Easy Maintenance

Owning a single-family home when you’re just starting out is an excellent idea since it is relatively easy to take care of one property. The houses are also generally kept in better shape than multi-family.

More Responsible Tenants

Tenants in single-family homes tend to take care of the properties better since they feel like it’s their own home. Our realtors in NJ often see this when they’re showing single-family rental properties to prospective buyers.

ROI Decreases with Vacancies

This is the biggest con of single-family homes. As realtors in NJ, we have seen that vacant properties are tougher to sell and as a property management company , when your tenant leaves, you have no cashflow and 100% vacancy. Not good.

Multi-Family Homes

Safer Investment 

The upfront cost is obviously higher compared to single-family homes, but what you’ll get with multi-family homes is strong cashflow from multiple units and reduced risk.

This makes multi-family homes in New Jersey a relatively safer investment since you have multiple streams of income. If you have one of your units vacant, you will not have to be stressed as much compared to single-family homes.


This is a massive pro. If you figure out a way to increase the property value, you will be able to charge higher monthly rent, which will increase monthly cashflow and the overall value of the property. We specialize in this when we renovate properties in New Jersey for clients and then continue with the rental property management.

More Skin in the Game

Banks will want a larger down payment if you’re buying a multi-family property. Most want 25-30% down. If you’re lucky, you can find a bank with 20% down (we recommend Spencer Savings Bank to our clients).[1]

For multi-family with 5+ units, that becomes a commercial loan and that’s an entirely different strategy.

From our experience as realtors in NJ, we have seen clients make money owning single-family homes and multi-family homes. Both have their pros and cons. If you are looking for a realtor in New Jersey to help you buy or sell an investment property in the Central NJ area, no one is more knowledgable than us at Tverdov Housing. Send us an email today to get the process started!


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