As you consider relocating to Iowa, one of the biggest decisions you’ll face is whether to buy a single-family home or a multi-family home. There are advantages and disadvantages to both options, and choosing the right one for you will depend on your lifestyle, financial situation, and investment goals. In this blog post, we’ll explore the differences between single-family and multi-family homes and help you make an informed decision.
WHAT’S THE DIFFERENCE BETWEEN THEM?
Single-family homes, as the name suggests, are properties designed for one family to occupy. They come in a variety of sizes and styles, from cozy cottages to sprawling estates. Multi-family homes, on the other hand, are properties that are designed to accommodate multiple families or tenants. These can include duplexes, triplexes, condos and apartment buildings.
BENEFITS OF LIVING IN A SINGLE-FAMILY HOME
MORE SPACE
One of the primary benefits of single-family homes is the sheer amount of space they provide. The average single-family home spans roughly 2,500 square feet, much larger than most multi-family units which typically come in at around 1,000 square feet. And that’s not counting the additional space you get from (in most cases) having your own yard, driveway, and garage.
BETTER PRIVACY
Privacy is another major perk of owning a single-family home. Unlike multi-family properties, standalone homes do not have shared walls. This helps ensure a quieter living environment for you and your family, allowing you to enjoy your personal space without disturbing your neighbors, or vice versa.
BENEFITS OF LIVING IN A MULTI-FAMILY HOME
WELL-SUITED FOR MULTIGENERATIONAL FAMILIES
Multi-family properties are a great option for multigenerational families. They provide separate living spaces under one roof, allowing families to live together while maintaining privacy and independence. This is often more affordable than buying separate homes. Plus, sharing expenses like utilities and maintenance costs is possible.
LESS MAINTENANCE WORK
When you own a condo or townhome, you are not accountable for maintaining the exterior of the building, such as mowing the lawn, clearing the snow, or cleaning the gutters. Moreover, your homeowner association might handle some mechanical system maintenance, like HVAC, electrical, and plumbing. However, it’s essential to note that you contribute to these expenses through your monthly HOA fee.
COSTS & INVESTMENT POTENTIAL
SINGLE-FAMILY HOMES
On a per-unit basis, single-family homes tend to be more expensive up-front, with larger down payments and higher mortgage costs. However, they typically appreciate faster than multi-family properties due to higher demand among homebuyers, making them easier to sell and leading to excellent long-term ROI.
Another advantage of investing in single-family homes is that they offer more control. As the sole owner of the property, you have the ability to make decisions about maintenance, renovations, and upgrades without needing to consult with other owners or a homeowner’s association. This can give you more flexibility to customize the property and increase its value.
MULTI-FAMILY PROPERTIES: AS A HOMEOWNER
When you purchase an individual unit in a multi-family housing complex, you’ll tend to have lower down payments and mortgage costs compared to buying a single-family home. But remember, it will likely appreciate at a slower rate and may take longer to sell.
That’s just a unit-by-unit comparison, though. Things look a lot different at the investor, i.e., landlord level.
MULTI-FAMILY PROPERTIES: AS A HOMEOWNER
One of the key advantages of investing in multi-family real estate is the potential to earn passive income by owning and renting out multiple units. This can make multi-family homes a more lucrative investment option, especially in areas with high rental demand like Altoona, Iowa.
However, these properties come with additional expenses and responsibilities such as maintenance, repairs, and property management fees. Plus, acquiring a multi-family property as an investment typically comes with higher up-front costs compared to purchasing a single-family home.
But while it may seem easier to obtain a loan for a single-family property, banks are often more willing to approve loans for multi-family properties because they tend to generate consistent cash flow each month.
In any case, it’s incredibly important to start only with what you can handle. For example, many first-time landlords will opt to buy a simple right/left or top/bottom duplex instead of a triplex, fourplex or something even larger. Remember: you can always scale up later.
ALTOONA, IOWA IS THE IDEAL PLACE TO BUY
When it comes to choosing the best place to buy a single-family or multi-family home in Iowa, the City of Altoona is a great option to consider. Altoona property sales have been on the rise in recent years, and it’s not hard to see why. Our city is one of the best places to raise a family in Iowa, with outstanding parks and amenities, low crime rates, a thriving entertainment scene, and close proximity to Des Moines.
Moreover, if you’re interested in lucrative Altoona investment properties, multi-family properties can be a smart choice. Our rental market is especially ripe with opportunity, seeing as our resident population has grown 35% since 2010 and is expected to increase another 6% by 2027—making it easier to find tenants and generate rental income.
CONCLUSION
In conclusion, the decision to buy a multi-family or single-family home in Iowa depends on your lifestyle, financial situation, and investment goals. If you’re interested in generating passive income and building wealth through real estate, investing in a multi-family property might be your best bet. If you’re looking for a larger living space with more privacy and control over your property, a single-family home might be the better option.
Regardless of what you choose to do, you’ll be sure to find an abundance of opportunities in Altoona—Iowa’s rising star.
LEARN MORE ABOUT LIVING IN ALTOONA, IOWA
Planning an Iowa relocation? Getting ready to start a family? Perhaps the best place to plant your roots in Iowa is the City of Altoona, a community just minutes east of Des Moines.
Altoona offers a high quality of life, a prosperous economy, and an exciting entertainment scene. This fast-growing, supportive community is where businesses and families come not only to live, but to thrive.
Altoona is a home for growth—the perfect time to move is now.
Visit our “Living In Altoona” page or request additional information to learn more.