Your initial choice when investing in residential real estate typically pertains to investing in single family vs multifamily properties. Single family properties tend to have more stable demand and  more appreciation potential than multi-family properties. There are multiple reasons why someone may pay more for one single family house over another and therefore the market is more volatile. On the other hand, multi-family properties is more a business-like transaction where price is usually determined based on income and appreciation pro-formas.

Different variables affect the single and multi family market differently. For example, if interest rates are sky high there is a better chance people will flock to multi-family properties as rentals. On the other hand, when interest rates are really low many people can afford single-family houses and this drives the prices up. Both single and multi-family properties are popular in North Texas.