It is easier to finance
While multi-family real estate investing may be more costly, it is also much easier to finance than single-family properties.
Depending on the type of property, a multi-family property can run into the millions for multi-unit complexes, especially for a good location. You also have to account for zone rules and vacancy rates, as well as costs for repairs and utilities.
Buy/sell, rent/lease residential &
commercials real estate properties.
Financing is, of course, another key consideration. If the multi-family property has five or more units, you have to get a commercial property loan.
The plus side, however, is that multi-family properties consistently generate solid cash flow. This is true even if some tenants are late on rent or there are a few vacancies. Look at it this way: if your 10-unit property has one vacancy, that means it is only 10% unoccupied. If, however, a tenant moves out of a single-family property, it is 100% unoccupied until rented again.
This all means that multi-family real estate is less risky for lenders. And for the property owner, it can result in more competitive interest rates.