Real estate can be an alternative for those who are not able to withstand the volatility of the stock market. It is also a better investment for those investors who wish to take an active role in growing their capital, rather than passively putting their money into a fund to be managed by someone else. One of the beautiful things about real estate investing is that there are more than one strategies that can be successfully used.

Rental property investing is the preferred investment strategy for those investors who want an additional source of monthly income along with slow but steady appreciation in the value of their portfolio. When it comes to residential real estate, there are two main types of properties that one can invest in, single family and multifamily. As the name implies, single-family properties are residential buildings with only one available unit to rent while multi-family properties, also commonly known as apartment complexes, are buildings with more than one rentable spaces.