Multifamily vs. Single Family Homes – Grant Cardone vs. Kris Krohn

Multifamily vs. Single Family Homes – Grant Cardone vs. Kris Krohn


Kris Krohn here with Limitless TV and
today, Grant Cardone and I go a little bit head-to-head as we talk about
multifamily vs. single-family homes. Let’s see how it winds up. Why multifamily rather than just investing in your house? Grant, really good question.
I’m gonna argue for single family home for a couple of main reasons, it’s an
easier entry point for the average American. If you get into multifamily, you
need a lot more money and you’re gonna be taking on a lot more risk and you’re
going to pulling a lot more eggs in the basket and a lot more eggs in the basket and
that’s not necessarily bad but it is important that you are taking on a size
of investment that makes sense for where you’re at and so if I had a chance
between having all of my money wrapped in one project or having ten little
single family projects, I think, especially for the beginner, even the
novice or even the intermediate, having those ten homes, there’s some advantages
you get there that you may lose out on once you step
into the bigger risk of multifamily. There’s a hundred, almost a hundred
million baby boomers, there’s 80 million Millennials, these are boomers.
Now what are these two groups have in common? They’re on both
ends of the age spectrum called a demographic, right? We don’t have a
developed middle class today, you understand? We already did that, that
was done 50 years ago. So when these people, these hundred million baby
boomers were in 30 and 35 years old, they started buying homes, okay? They were also
having babies at 20. What else has happened is, you got 80 million
Millennials saying, “I don’t need a house dude, I need mobility. I don’t care if I
got a house.” Grant, you’re right, multi-family is a really great solution
for the baby boomers and the Millennials but there’s a bigger gap than just that.
Yes, a hundred million here, yes, 80 million there but look at all the
families that are out there that are saying, “I want the American Dream. I want
my own house.” I do think there’s room for both strategies here but for me, I
believe that there’s a much better market space for the entry level family,
people that have one, two, three kids and they’re saying, “Hey, we want a place of
our own, we want our own lawn, we want our own backyard, we want a place that we
can do up.” And you lose some of those freedoms, when you go into multifamily, a
lot of people, sure, there’s some freedom that comes with that the apartment
feeling and the condominium, the HOA and maybe you pick up, you know,
some of the benefits or a pool access or a hot cut, hot tub Jacuzzi or something
like that but single-family home is still very core to what it is to be
American and I think there’s a greater population, a larger number of people
that are seeking that right now. Buy house for 200 grand or buy an apartment for
200 grand, okay okay? I’ll tell you simple, pick the one that makes you money.
Not in the future, pick the one that makes you money this month. I can get
this one to cash flow and I get a check every month, if you don’t like money, give
the money to your church but the house, you never ever get a check from, the
checks go to the house, not to you. You get it? Simple. I have no idea what you’re
talking about, that makes absolutely no sense whatsoever, I’ve never done
apartments, I’ve only ever done single families and I’m sorry the checks come
straight to me, it’s just straightforward real estate investing so I may have
missed something in what you’re really trying to communicate there but an
apartment, is it going to appreciate as well as a house? No. Is a house gonna bring
me more dollar per dollar rent than an apartment? Yes. Am I gonna get someone
that’s interested in homeownership or I can do a lease option where they’ll
actually take better care of the house an apartment? Absolutely. Just add up
those three things alone, Grant, and I’m sorry, there’s going to be more money coming into
you on a single-family home versus multifamily. You’re going to own one house out of 4,000 apartments, okay? How could you own 4,000 houses? You’re
going to go do 4,000 different deals? I probably did 18 deals to about 4,000
apartments. Three of my deals don’t cash flow, three
out of the 18 don’t cash flow right now but I’m in rehab, okay? I’m rehabbing them,
two of them don’t, okay? But they will someday, that house, no
chance that house will ever ever, no matter what you do, do it, okay? Spit on it,
shine it, buff it, okay? It will never write you a monthly check. That is such
a bizarre assertion that a house cannot produce a cash flow, cannot produce an
income for you but I will say, I do like your idea of 18 deals and having 4,000
units, I’d have to see the numbers on that and see what that looks like but,
Grant, you’re Grant Cardone and we’re talking about everyday average Americans
and I guess the question at the end of the day is,
are you really trying to appeal to someone that has a lot of money, a lot of
success in trying to do something? For me, I’m just starting out with the newbies
and even some of the most experienced people, Grant, will say absolutely 4,000 houses versus 4,000 doors and again let’s just talk about
the reasons why. Right now, at the end of the day, with the house, I get
appreciation that I don’t get on apartments. With a house, I could put a
homeowner in there that will take better care of it than an apartment user that’s
just transitory often and they’re in and they’re out and you’re gonna see a lot
more turnover with that, when I’m doing a lease option, I can collect downpayments on these houses, I can get people taking care of the houses in
different ways, with an apartment, you have utilities that you have to pass on
to them, with the house I can have them put it in their name and I can have them
take ownership and accountability for what that looks like.
Appreciation, this is such a big one. I got my equity that I walk into which
grant I can do on houses and I get the appreciation component, so you add all
that up and there’s a reason why it made me multi-millionaire by the age of 26
and I won’t say that you can’t do that with apartments because reality is, I’m
super inexperienced and apparently, this is your niche so there’s got to be a way
to do it well and do it successfully and it’s working well for you. I think at the
end of the day, I’m really just taking a stand for the common everyday person
like me that started out with nothing that says, how do I get somewhere? And
right now, if I were to step into an apartment unit that had hundreds of
units associated with it, we’re talking about a multi multi multi multi multi
multi-million, probably in the tens of millions dollar kind of deal and you
know what? Those deals absolutely can work, there’s a reason why Donald Trump
rose up multi-billionaire all over again, buying skyscrapers. Do I think that the
average American can step in that way? No and maybe I could have but I didn’t and
what I’m doing is working, it’s certainly not broken. So multifamily, single family,
I will say I think you can make both of them work but at the end of the day, you
got to get into reality. What is more likely? Where are you going to have your
greatest likelihood of success? And right now, if I had to put ten of you on on
a multi-million dollar apartment or ten of you on an entry level single family
home and let’s just say that they cash flowed the same and the growth was the
same, which one’s more realistic? I think for you and I, the more realistic thing
might be the easier to step into project which is single family and
for me we’ll put it heads or tails over something that I’m gonna promote and try
to help you with to make sure that you actually have a good shot of really
getting started, as opposed to dragging your feet are coming up with reasons why
that projects too big, it scares me, you know, if I lose on it I might
lose everything, as opposed to something that, you know, it’s like an elephant, you
can take it down one bite at a time. Right now, that’s a herd of elephants and
that’s a big project to take down so for me, I’m just asking myself, at the
end of the day, assuming everything was equal, which
one’s more realistic? I’m going to go with a single-family house. So did you like the
style of this video? Is there anyone else that you want to pit me against cuz I’m
not afraid to go toe-to-toe and have a conversation about what is best. I may
not always be right but I certainly got strong opinions and it’s going to be
based on track record and facts on what I have done so go ahead and spit some
comments below and let’s get juicy.

100 thoughts on “Multifamily vs. Single Family Homes – Grant Cardone vs. Kris Krohn

  1. Great point of view, I definitely agree with you on single homes and the reality check. And I just want to say I absolutely love watching your videos, you're always so calm and reassuring and your voice is so soothing to listen to. 🙂

  2. What Grant is saying is that with multi-family, the equity develop faster than a sfr. If with the same $/$, you can rent 3 out of the 4 apartments and bring in more cash flow than your 1 sfr currently under rehab. That’s all Grant is saying. When you buy multi family you may not be rehabbing every unit so you’ll be bringing in more cash flow sooner. Also from a financing or mortgage standpoint, a multi unit apartment bringing in 3 units income and 1 vacant is 75% more money than a single unit sfr. IF you were given the choice to spend $200K. You are in a better position to invest it in the multi family. It means that the 4 unit home cost you $50k each instead of 1 unit for $200k. Ok?

  3. Every investment guru is gonna tell you, diversify diversify. So if you are smart you’ll look into sfr, multi family, apartments, retail AND commercial properties. Then you will understand the progression.

  4. It’s the same as you saying you have more equity when you have a basement apartment or in-law suite in your sfr. Same idea. You’ve been investing in multi-unit all along.

  5. Limitless Charges $15,000 to work with the company….

    Is this true????

  6. dunno who grant cardone is but sounds like an asshat

  7. Gotta respect both of them. Agree with GC, multifamily is the endgame. Multifamily you have so much more leverage in the big numbers game. Respect to both of you guys, keep up the great work!

  8. If you watch Grant Cardon's videos it seems obvious that he doesn't like Single Family homes as investments since in his early days he was burned by buying and renting out his first single family home. then he switched to Multi family and became successful… both Multi and Single family houses are great investments and each has it's pros and cons.

  9. nice

  10. Bggs in the easket

  11. 👍

  12. With all do respect sir your taking what Grant Cardone is saying out of context. His argument is against buying a home for u to live in because all you do is put checks into it and none come out. Meaning a home is not an asset. Grant instead recommends us to invest that money to buy a multi unit property that u can rent out that will have checks coming to u. Hope this helps. Keep up with the awesome videos. Ur great!

  13. Hey Kris, love the videos and advice. I'm 21 and have enough money saved for a down payment. I've been weighing the pros and cons of owning a duplex and renting the other side, hoping to cover the mortgage with the adjacent side. Is this a good strategy to get started in real estate? Should I buy this property in a LLC? I hope to move on to single family home also. Thanks in advance.

  14. I agree with you. I own 10 Single family home rentals and they gross 11k a month and 40% of the homes I own are brand new construction. The other 6 are homes I bought and fully remodeled.  My tenants treat the homes like it was their own home and take pride in where they live. . One of my tenants has a nice vegetable garden and is the envy of the neighborhood. My tenants are teachers, postal worker,  city employees, etc. I have tenants basically that have better jobs and financially are better off then those that move to a duplex, triplex or a quad. My goal is to double my portfolio and retire on 20 Single family home rental properties. Love your video

  15. Begs in the ask kit

  16. SFH doesn't cash flow? That was crazy talk. Multi-family loses.

  17. This isnt rocket science. What does cardone do? He gets investors and finds apartment complexes to acquire. He has a vested interest in people seeking to buy multifamily property. He is clearly very knowledgeable. He is also full of shit, plain and simple. Thats why i like this dudes vids, no bs and the occasional insightful stuff. Great vids.

  18. Spot on !!! Real advice, remember Grant is selling books and courses so he try’s to get people pumped on becoming “multi millionaires”
    Great Video 👍

  19. where do people go when the housing market dips…?

  20. I’m planning to buy my very first sfh but I have no idea where to find deals…

  21. I know Kris said he isn't an expert in multi units but a breakdown of different types of multi units all the way down to single family properties in terms of their risks and vacancy rates would be a great episode.

  22. Love GC, but you are so right Kris!

  23. CLICK BATE……………..
    Single Homes are for IMBECILES….

  24. Appreciation is what a lot of apartment investors forget. What has created more wealth is really appreciation not cash flow. Buying houses in the mid-west for cash flow may pay cash flow now but appreciation is where the real money is made. One single family in my market paid me over 100K a year for 2 years before I cashed out. Others typically pay me 50-60K a year in appreciation. Buy 2-3 single family homes in the right market and you're making 150-300K a year in appreciation alone. Buy 3 cash flow houses in Illinois and you're making 15K a year….You can always turn equity into cash flow too, take your money and buy hundreds of cash flow properties when you need the money. Luckily mine appreciate and cash flow, but I bought right.

  25. Thoughtful content – I'm investing in Orlando and all this content helps!

  26. Hey Kris, any advise about purchasing a retail/commercial property?

  27. Great video Kris! These are practical points that are ignored by most leading personalities. I love Grant Cardone and his advice, but I agree with you here. This is the most realistic way for most people to start investing in real estate and you can always trade up when you are ready 🙂

  28. And you have thousands of homes right

  29. youre spot on. gc way is a different game (nothing wrong w that) apples/oranges

  30. Kris, make sense!

  31. Grant is not comparing renting a house and renting apartments. I have seen his shows and he is against home ownership and rather than purchase a home to live in, he says buy an multi million dollar apartment. He is not comparing apples to apples, thus not making sense. I believe in think big but start small where you are.

  32. Grant is one of the most delusional youtubers I’ve seen. He’s an example of how someone can be a great performer but bad teacher.

  33. Well said Kris!

  34. More money comes from the apartment complex. Multiple rooms which can occupied while the single family can and cannot be occupied which becomes a liability since you still need to pay for it taxes and such. Multi family keeps you fed since we are in a renters market. Buy a house when you're ready to settle

  35. Like watching you and Grant.
    I was surprised to see him talk about going from a duplex to a four plex and stepping it up to where you could eventully pile up a 5% down on a bigger complex.
    Have you pitted yourself against Ron LeGrand.
    I brought him a mentors of mine and was surprised when the main partner signed up for $20k in training. (no, I did not get ANY breaks or referral for that…ugh…long stupid story)
    But, somewhere there are mentors affordable to the common beginner and one can work up to getting the training and paper work and action taking and education and mindset and coaching they need.
    BTW… LeGrand's quickstart program is around $ 4500
    and had I known the Mentor guys would sign up for LeGrand and I had tagged the transaction correctly with the digital code…
    I would have had like 9k from the 20k sign up.
    I even sent all the verification and screenshots and texts etc and my receipt for the workshop I paid for and invited those mentors to.
    Ron just basically said,
    …No Deal…
    ugh…

  36. Hey Kris, just discovered your channel yesterday and I'm a proud new subscriber! Your style and perspective are very shrewd indeed, very logical, and very well-reasoned. Keep 'em coming! -Will

  37. Kris, I saw Grant's video today about why he never buys single family homes and was going to ask you to make a video about your thoughts on this. Thank you for this video – I agree completely with you! Sure, once someone has made tons of millions in profit through single family homes, it would make sense to venture into something bigger and riskier like multi-family units, but until then, for the average American your style and method is GOLD!

  38. I see what you’re saying but having a single family home and focusing on a single renter or tenant meaning one unit is extremely risky. Just one month of vacany a year can burn the cash flow for the remaining 11. Grants main point is it’s way less risky to own multi family. It is. Now owning a single property with multiple units is way less risky and very achievable for the new or average investor. I would focus on finding a triplex or fourplex as a new investor for my first deal. I would never manage my own deals either! Focus on growth.

  39. Hi Kris do you rent your properties or do you buy and resell?

  40. A lot more begs in the ass kit. Lol

  41. Also to invest with Grant you need to be a Certified Investor, at least $1 million net worth not counting your house or make over 250,000 year. You would have to buy his sales course and sell sell sell. GB

  42. there are pro's and con's to both? types of investment methods. I have to say, James does have a good point.Unless you already are making good money.And know what to do with that money. you have to start somewhere. so single family does make sense. Once you go past 5 units the rules change. dramatically. 25% down or more. And you better have a lot of Cash on hand. before and after the deal

  43. I really liked the beggs in the asket part

  44. Nice video. Appreciate your knowledge. Im getting started this year right here in Utah brother. Saratoga Springs, Eagle mountain area

  45. Haha 👏😄 Let's Go Kris is Fired Up! You really inspired me with this video!

  46. What about a duplex?  I was thinking about getting a duplex for my first investment.  Is it a good idea?

  47. Single family vs multifamily. why not both

  48. Grant personally got me into this stuff but i quickly ditch him because all he is a giant seller.

    I currently rent and don't make too much, to me makes sense to buy multi family so i can live in one unit so i can save to go to the next one. You still get back yards to enjoy. You could even rent the entire place out to a single family if you want.

  49. Dude, glad you put this out there. Thanks for the info and i strongly agree for the newbie your method is the best.

  50. Good points but This is a completely fake debate? He just cut up one of grants Vids and went back and forth with a recording for the views😂😂😂 SMH come on brotha just stay the course your name is starting to become known. There's no need to use other known YouTubers names just for views lol.

  51. I want to start with single family and once I'm making enough money and have a good amount of single family homes I can start acquiring some multi family's as well commercial real estate

  52. I saw your video on what the lease to own option is. It sounds really good for the leaser, but i would never do that as a buyer or renter. As the leaser, are you not hoping the people leasing to own fail or decide they want out so you can not only cash in on the income without having to put any repairs into the house or having to take care of it at all, but you also wan't that appreciation after a few years or sooner?

  53. Is he saying your own personal house won’t cash flow?
    And live in the apartment?

  54. Kris debate against Graham Stephan please

  55. he does talk to people with bigger pockets…not the average person. He's talking about people with at least 100k to invest

  56. So who won the battle our boy Kris or grant I wasn't able to judge them by their knowledge but you are able to judge them with their net worth

  57. I think the law of both is important here. To know when to take action on either strategy is the point

  58. Buy a house… without a rentable guest space, And it won’t cash flow if you have to live in it and it’s the only house you can buy but if you buy a duplex or larger then you can live in it and it will cash flow. I think that’s what he was saying but I still agree with the idea of single family homes but one day I may get into multi family homes. 10 single family homes and I could retire though with my lifestyle easily and they stay rented more often from what learned in research. So as of my now I’m only interested in single family homes.

  59. Hey Kris, what’s your opinion on the different depreciating factors on your taxes when it comes to multifamily vs single family. Multifamily being a duplex up to a four plex

  60. Can you make a video on turnkey real estate investing?

  61. Personally I don’t like the transient nature of apartments and plexes. You have to account for shorter stays, and more frequent make-Ready’s, which ultimately takes more of your profits. Find a nice B class single family in a good school district, and your tenants tend to live there longer.

  62. Go against Dave! 😁

  63. Begs in the asskick., eggs in the basket 😂 Kris

  64. Peter Harris (Commercial Properities) 7:13 "is there anyone else we'd like to pit you against?"

  65. Great video.. thank you

  66. See you soon brother 🙏🏽

  67. when one of his renters get roaches or bed bugs hes going to wish he only had single family homes.

  68. grant doesnt even know who you are

  69. I don’t see a jet in your list of toys.

  70. I would start with a 4plex then knock a wall and combine two units till I move out and build the wall back a 4 plexiglas pays itself off in 5 years compared to me paying a death note for 30 yrs

  71. I've always been interested in doing single family homes due to exactly that. Helping the lower class who wants to be in a decent home. Sad to see that there isn't much for 125k or less that's not rehab and qualified for a loan.

  72. Kris Krohn, enjoyed the format & how informative the video was. Can you have a conversation with Morris Invest (Clayton Morris)? Thanks!

  73. your opinions are absolutely sound and useful for normal family who wants to invest in real estate.

  74. Subbed. Thank you.

  75. Do an insight videos about The Donald, and focus on how he made the deals, without being a critic of the morals… Plain and simple strategy and deal making, thank you Chris

  76. NOOO WAAYYY IV ALWAYS WANTED YOU TWO TO COLLAB

  77. Head to Head with Clayton Morris

  78. I’m BEGGING to ASK IT – which investment has better ROI and pays off sooner, higher?

  79. Grant is appealing to HNWI that want a passive income and not a JOB as is the case with active single family or active multifamily investing.

  80. Kris you make sense buddy

  81. I would start on single family homes and finish with multifamily

  82. There will be the Cardone's out there, which is just more single family homes for US !!!

  83. Who can afford to buy an apartment building?

  84. I stopped watching Grant cardone after i started watching you Kris, for 3 Months now and you’re by far the greater teacher for myself (20 years old) then that shmuck!
    Keep up the Content !!!!!

  85. Go head to head with Graham Stevens or Meet Kevin

  86. You nailed it! And btw. Should one ever want to go beyond 10 homes, you can. Some investors have portfolios in the thousands of single families.

  87. So true Buying a house will pay you a check if you rent it out same as an apartment. Also buying a apartment also will not pay you a check if you live in it so yeah I did not understand either but thanks that multi family homes still works great in real estate.

  88. Come on kris use your head… hes talking about his own house

  89. Subscribed, Grant is way too full of himself.

  90. I agree I think apartment houses should be designed for young people or singles who haven't settled yet.

  91. 4,000 doors in 18 deals (222 ea) – Pretty cool!

  92. Mfw now kris does multi family

  93. A small rental increase on multi family commercial 5+ units can change the values on the property overnight quite dramatically.

  94. Why not both🤷🏾‍♂️

  95. Such great points! Starting smaller enables one to build momentum! Thanks for sharing Kris

  96. I love your honesty bro. Keep it up. 🔥💪🙌🏼👍🏼

  97. I trust what you are saying.Makes total sense

  98. Thank you, bro. You spoke my mind on GC.

  99. @ 2:29 That makes absolutely no sense whatsoever 😛 I was thinking the same thing, like wtf

  100. Grant started out as a seminar salesman, used the profits to aquire, renovate and sell a SINGLE FAMILY HOME for 13 million and then started investing into multifamily apartments.

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