Ron Cadman Explains Why Single-Family Housing Should be Part of a Multifamily Property Investment Strategy



While multifamily housing is an excellent addition to a real estate portfolio, many rental investors are neglecting to investigate the benefits of the single-family housing asset class. In the following article, Ron Cadman discusses single-family housing investment strategies, and what makes this approach so successful for such a diverse segment of investors. Ron Cadman is a real estate professional, specializing in multifamily housing.
Single-family housing may not seem like a significant revenue generator – in fact, it can sometimes take a fair amount of time and energy to begin to accumulate a worthwhile return – it is nonetheless a highly valuable part of a well-structured real estate portfolio. Here's why.
    • Single-family rentals allow investors to accommodate a diverse population of tenants. Not every renter wants a one- or two-bedroom apartment. Not every renter wants to live in proximity to strangers. Some renters want a back yard. Single-family rentals offer lifestyle advantages that multifamily units often cannot, and a single-family housing community investment can deliver a housing solution that better aligns with an increasingly large number of renters.

  • Single-family rentals have lower turnover than multifamily. Multifamily rental turnover is approximately 50 percent; single-family hovers at about 30 percent. This reduces the cost of refreshing the property between renters, as well as vacancy time.


  • Nearly 50 percent of home renters report that they would prefer a single-family residence. Approximately half of the rental population actively seeks single-family options when deciding upon a rental home.

Having single-family rental properties as a part of your real estate portfolio could mitigate fluctuations in the multifamily market by offering housing opportunities that a large portion of the tenant pool finds desirable. For most investors, it's simply too good an opportunity to miss.
Ron Cadman is co-founder of Investar USA, a Phoenix, Arizona-based real estate investment group.

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