Christian Osgood explains why multifamily properties beat single-family rentals for investors. A single-family home drops from 100% to 0% occupancy when a tenant leaves, forcing you to cover the mortgage. Multiple units spread that risk across tenants, keeping cash flow stable.
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If you're going to figure out how to buy it, you might as well have more tenants than just having the one person in your house. Christian, what did you just draw? More facts. Multifamily is in fact more better. Oh yeah, there you go. Because of scale, more units does add that stability. It's so much easier to play the game when you have more people in the building. For example, you take a single-family house. Well, it's great when it's occupied, right? You have one person there, 100% occupancy. It's glorious. Well, the problem is people don't live in one location forever. Renters, they could have a larger family, they could have a kid. Absolutely. They can get married, they can move, new job. All these different factors can affect that, and you go to 0%, which puts you in a place of negative cash flow. I don't like having to pay my mortgage. I do not either. That is against our principles of you need to buy deals that cash flow and retain cash flow.