This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Do you want extra cash or extra room?
Multi-Unit
BUT if you can afford it, the more innovative option would be the multi-unit option because you can rent out those units and start building up significant capital (i.e., equity) in physical real estate.
If you don’t have a big family or don’t need the extra space, the multi-unit option might be the route for you.
Most multi-unit purchases will require a jumbo loan if you’re not utilizing cash, but once you get some renters in, you can have multiple people amortizing your debt; this brings me back to the following article:
In the article, Robert T. Kiyosaki explains how he used debt to not only buy a Porsche but also become richer in the process of buying the vehicle.
Don’t Use Your Cash To Pay Off Your Debt
There are opportunities to use debt to create income and wealth. Many people do it. Robert T. Kiyosaki did it. Instead of making a down payment for a property with cash, he used credit cards and loans. Then his tenants paid down the debt for him. You could even make it to where your tenants are paying for not only their unit but yours as well since rental prices can be higher than mortgage prices.
Worried About Tenants?
If you still haven’t bought your first home and have extra room to make an investment, consider the multi-unit option.
If you’re anxious about finding tenants, consider seeking out trustworthy friends and family (i.e., still utilize a contract) as potential tenants. Besides, who doesn’t want to live closer to their friends and family? 🙂
Single-Family
The single-family unit is an excellent starting route if you don’t want to bite off more than you can chew. With this option, you can build equity over time and use that equity as a downpayment for your second home that you can rent out.
The single-family option provides you with more room if you have a more prominent family or need more space, and it also helps you ease your way into real estate more slowly.
I was chatting with someone who owns an expensive property by a beautiful shoreline; they told me they couldn’t afford it if they weren’t renting it out. It’s booked every weekend. But eventually, that property will be paid in full, and won’t need to be booked every weekend. Does the second property have to be oober expensive? No. But if you know the property will be trendy and it’s a dream vacation spot or home, rent it out to the max until it’s paid off, so it can be 100% owned by you. By the time it’s paid off, you might have found another spot, and you can use the second property as a pure income stream.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.