ScaredyCatGuide to Property Types

Now that we know how to correctly run the financials on a investment property the way a good scaredycat investor would. Let’s discuss the types of properties that are out there!

We are focusing exclusively on Residential Properties. This consists of Single Family and Multi-Family.


Multi-family is exactly as it sounds. It’s a building or dwelling that is zoned and designed to house more than one family.

However, within the multi-family world you have duplexes, triplexes, fourplexes and so on and so on. Multi-family is pretty straight forward, really just the matter of how many units.

Please Note: Anytime you invest in a multifamily with more than three units it is now considered a commercial property so taking out a traditional home loan is no longer an option. At that point you would look to portfolio lenders.

Single Family

As for single family. Well, there is the traditional single family house as seen in the picture above.
However, you also have townhomes and condos that are single family dwellings.

Basically as the terms says, anything that is meant (zoned) for a single family to live in.

Single Family Loan Caveats

It should be pointed out, that while you can get a traditional loan from the bank on a house or townhome investment property. The same is not easily said for a property zoned as condo.

Bank will give loans on investment condos, but there is a laundry list of items the property and community must meet. Here in FL, the vast majority of communities do not meet the requirements.

I own rental condos and either used equity lines or private lenders to finance my purchase.

Homeowners Associations

Addtionally, many single family properties (especially condos and townhomes) are within communities regulated by an HOA (Homeowner’s Association). These organizations have bylaws that govern their community and dictate what is and is not allowed in a the community.

As a potential landlord, you must decide if this is something you want to be a part of. Some investors avoid them like the plague. Some prefer being in an HOA.

Note: There is a fee -usually monthly, associated with these properties.
However, you do receive ameneties and services for this fee.

Next post we will breakdown the pros and cons of HOA communities along with the costs and services provided.

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