Why buying a single family might be the worst investment you can make

A lot of new investors get excited to buy their first rental. Most of the time, they start with a single-family home.

Here’s the problem. A single family is like sitting on a stool with three legs. If one leg breaks, the whole thing falls over.

One vacancy means no rental income. You are still covering taxes, insurance, and the mortgage. Renovations come out of your pocket. If the property sits vacant too long, that “investment” probably lost money that year.

Now compare that to multifamily. With four, ten, or twenty units, one vacancy does not sink you. You are still cash flowing, still paying expenses, and still building wealth. That is why multifamily is the foundation of financial freedom. It gives you stability, scalability, and steady income.

Of course, multifamily has its own risks. More tenants mean more management. Larger properties often come with bigger repairs. Financing can be more complex. But the good news is those risks can be managed with the right systems. Strong property management, reserves, and proper underwriting turn those challenges into opportunities.

Unless you are flipping it, buying single-family as an “investment” is just buying yourself a job.

So here is the real question. Would you rather sit on three legs or twenty?

What’s your take? Single-family or multifamily?

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