Single-Family or Multi-Family? Finding Your Fit

How to Choose the Right Property Type for Your Next Investment

At InvestInUtah.ai, we help a lot of first-time investors and accidental landlords figure out what their next move should be. One of the most common questions we hear is:

“Should I buy a single-family home or go for a multi-family property?”

Both options can be great investments, but they offer very different experiences, returns, and strategies. This article will walk you through the pros and cons of each, so you can decide which one makes the most sense for your goals, risk tolerance, and lifestyle.

What Is a Single-Family Rental?

A single-family rental is a stand-alone house that is rented to one tenant or household. These are the most common type of rental property and often the easiest place to start.

✅ Pros:

• Easier to finance with traditional loans

• Higher tenant demand in most neighborhoods

• Typically attract longer-term tenants

• Usually appreciate well in strong markets

• Easier to sell because there are more potential buyers

❌ Cons:

• Only one stream of income

• Vacancy means 100 percent of your rent is gone

• Property taxes and insurance often cost more per unit than with multi-family

What Is a Multi-Family Property?

A multi-family property includes two or more units in the same building. This could be a duplex, triplex, or fourplex. Anything over four units is considered commercial.

✅ Pros:

• Multiple rental streams help reduce vacancy risk

• Often produce better cash flow than single-family homes

• House hacking is possible if you live in one unit and rent the others

• Easier to build scale with fewer transactions

❌ Cons:

• More expensive upfront and sometimes harder to finance

• May require more active management

• Can attract higher turnover or more maintenance depending on tenant type

• Appreciation is more often tied to income than to market comps

So Which One Is Right for You?

Here are a few questions to help guide your decision:

Do you want a lower-maintenance, long-term play?

Go with single-family. It tends to attract families, offer stable income, and appreciate well.

Do you want higher cash flow and multiple units under one roof?

Look into multi-family. It can be a great way to generate income and scale faster.

Are you interested in house hacking?

A duplex, triplex, or fourplex allows you to live in one unit while your tenants help pay your mortgage.

Do you need a lower down payment?

FHA loans allow you to buy a 1 to 4 unit property with just 3.5 percent down, but you must live in one unit. This makes a multi-family house hack an incredibly powerful way to start investing.

The Utah Factor

In Utah, the inventory of quality multi-family properties is lower than single-family homes, but the demand is strong for both. Renters are looking for clean, well-managed places in growing neighborhoods. Whether you buy a house or a fourplex, what matters most is buying smart and running the numbers before you commit.

Final Thought

There is no one-size-fits-all answer. Both single-family and multi-family properties can be excellent investments when purchased intentionally and managed properly.

If you already own a rental because you held onto your old home, you are probably familiar with the single-family model. But your next purchase should be based on strategy, not just familiarity.

At InvestInUtah.ai, we help you explore both options, compare them side by side, and choose the one that gets you closer to your goals.