Pros and Cons of Multi-Family Investing in Orange County

Multi-Family investments are a wonderful way to create an additional income stream. As with any investment, there are pros and cons you should be aware of. In this blog post, we will review the pros and cons of multi-family investments. The more you know about what to watch out for, the better decision you will make when it comes to multi-family investing.


More Doors

When you purchase a single family home and rent it, you have one check coming in each month. If you were to buy a smaller, duplex or apartment building for a slightly higher cost, you can almost ensure you will never have a 0% occupancy rate. You will always have some sort of income coming in while you work to fill all of the units.

More “doors” also means more checks coming in each month. And who doesn’t want more checks?

Lower Costs

Typically your costs are lower when you have multiple “doors” or units. Making a major repair to a house with one tenant will have less value than the same repair on an apartment building. For example, fixing a roof can affect multiple tenants, whereas the same repair, at the same price, will only affect one single family renter. When you have several single-family homes, you can be making major repairs all year long!

One Stop Shop

If you own one building, you can pick up rent checks and make repairs all in one spot. If you are dealing with multiple single-family homes, you could end up driving all over town. Keeping a nice sized investment property near your home can be a lower maintenance way to make your multi-family investment.


More Tenants, More Problems

Your phone will ring more. You’ll have more rent checks to chase down, more neighbor disputes to mediate, and more small repairs to make. (More sinks to clog, more windows to break, more tiles to crack.) You must figure out if the additional hassles are worth your time and energy!


Statistically, turnover is much higher. This means that you will be paying more in cleaning fees, new carpet, new locks, paint and general fix-ups. You will have to spend more time interviewing and screening tenants and are more likely to have to deal with the eviction process.

Harder to Get Financing

Banks don’t lend in the same manner for multi-family homes. Using traditional financing isn’t usually an option unless you plan on occupying one of the units in the building you purchase. Investors often secure private loans or are able to pay in cash.

Tough to Resell

Reselling a single home will be much easier than selling an apartment building. There is a much larger market for a single family home then there would be for an apartment building. Fewer people out there are looking to invest. You will need to have proof of the income the property generates in order to be able to find a buyer at the price you want. Make sure you always keep proper records showing what a great value your property is!

Are you interested in investing in a multi-family property? We can help you with all the in’s and out’s so you can make the purchase that is right for you! Let us know what you are looking for!

Shoot us an email here, of give our office a call today!


Orange County is our specialty, and H&M Realty Group is ready to help you buy now! 



Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

Access Local CALIFORNIA Investment Property Deals...

Handyman Properties - Fixer Uppers - High Equity. *These are not on the MLS - Many are below $300k. Available properties on the next page.
  • This field is for validation purposes and should be left unchanged.