Strategies for house hacking Phoenix

[Jonathan Bebey]

Hello Bigger Pockets community

I am planning to buy my first property this winter in Phoenix. I am playing to live in the property with a rent by room strategy for a house-hack for the first year. Following the first year, I am planning to rent it out.

My question is: What are the pros/cons of buying a SFH vs. Townhouse for a house hack as a 1st time buyer and investment?

[Ryan Swan]

SFH

Pros:

1) More space - inside & outside

2) No HOA - one less semi variable cost and no rental restrictions now or in the future (remember CC&Rs can always change!)

3) PARKING - this is a big one. Parking at condos/townhouses can be very slim. Maybe one reserved spot and the rest is first come first serve guest parking that can quickly fill up at night.

4) Possible to have yard space and private pool = higher potential rent per room

5) More privacy, no shared walls with other neighbors

6) Easier to find more bedrooms - there are lots of 4-5 bedroom homes in good areas that work well for house hacking. However, I only know of a handful of townhouses that even have 4 beds, and none that I know of with 5 or more. The # of bedrooms is directly correlated to your potential income. 

Cons:

1) All else being equal will have a higher purchase price

2) Budget for bigger cap-ex expenses 

3) More property / yard maintenance and upkeep