So you’ve decided it’s time to buy or build a new home. You may need to consider hundreds of different things, but one of the earliest decisions you will be making is deciding between a single-family or multifamily home.

Single-Family Home

A single-family home is just that—a home that is designed and built to accommodate a single family. These homes are typically stand-alone buildings that are not connected to any other condominiums or apartment complexes. In most cities, city building codes may require that houses built on certain plots of land be single-family dwellings.

Multi-family Home

This type of home is designed and built to accommodate several families or individuals within the same structure. The most common examples of these types of structures are duplexes, split-level homes, or homes that have attached apartments. As with single-family homes, many city building codes require (or restrict) multi-family homes from being built on certain parcels of land. If you are looking to build, be certain you are familiar with the building codes for your particular area before you actually build.

What are some considerations to keep in mind for these properties? Below are the three most important factors that will determine which type of property is right for you.

Your Lifestyle

For many people, living in a single-family home provides peace and quiet that a multi-family home cannot. If you are a homebody who is looking for a place to call your own, explore single-family homes in detail. On the other hand, if you are looking for a more lively environment with plenty of neighbors to meet, a multifamily home may be right for you.

Rental Income

A great first home for many young professionals is a multi-family home. By purchasing the entire building, you can live in one part and rent out the remaining portion to help cover your living expenses. If the numbers work out, you may even be able to cover the entire cost of your mortgage payment and homeowner’s insurance with the rental income. If this is the case, buying a multifamily home can be a fantastic way for young professionals to get a start in the world.

Visitors

How frequently do you have visitors? As you grow older, letting friends from college crash on your couch can lose its appeal. Many older, well-established couples will consider multifamily homes for this very reason.