I have never been a huge proponent of one unit investment properties. I have heard arguments from the other side extolling the benefits of that particular investment type, but have never been fully swayed. I own one single family investment property, and while I have less maintenance, no water bill, and longer tenant stays, I still would prefer the extra income a multi family brings. That being said right now deals are popping up in all hues and flavors and I have found myself considering a single family or two as possible investments; However there is one major problem I have run into with these types of investments: Difficulty (Impossibility) of refinancing. While doing a cash out is painful in any scenario these days, refinancing an investment single family is out right tortuous.
As an investor I always take a long term prospective on deals. If I wouldn’t want to own the property 10 years from now, I won’t by it; however my business will not function without being able to pull out capital invested to fund further acquisitions. So while I will still considering a single family as an investment, it would have to be a sweet and I mean sweet deal and worth the opportunity cost of tying up substantial amounts of capital.