There's no universal winner. The answer comes from your goals and the cash-on-cash return on the two actual properties in front of you, so run the numbers on each rather than picking a category in the abstract. Our general read: a duplex or small multi-unit almost always cash-flows better over the long run. Risk spreads across more than one tenant, so a vacancy costs you half your income rather than all of it, and the cost per door is lower. Rent per door is lower too, but not proportionally as low as the price per door, so the rent yield relative to cost usually comes out ahead on units. Single-family has real advantages that don't show up on the cash-flow line: these homes tend to appreciate faster, they're simpler to manage, and they're more liquid when you sell, since your buyer pool includes owner-occupants and not just other investors. They're also easier to finance. Financing is the practical swing factor. If you'll live in the property, an owner-occupied 2-4 unit is the easiest, lowest-down way into rental ownership. As a pure out-of-state investment you can't occupy, multi-unit generally means a larger down payment and tighter financing, so fold that into the comparison. Pin down your goal, cash flow now versus appreciation and simplicity, and let the numbers on the two specific properties make the call.