How Do Townhomes Compare to Other Investment Property?

How Do Townhomes Compare to Other Investment Property?

Sugar Land, TX · Member since 2015 · 6 posts · 2 votes

How do townhomes compare to other properties like condos or SF homes? Are they a good investment property to get started in renting and becoming a landlord? I feel that they don't have as much fees as condos do, though both do have HOA fees. The only bad thing is that you're sharing a wall with other property owners, but like condos, they're generally less expensive compared to SF homes, which starting out as a new investor without much capital to begin with seems like a good option for me.

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  • Fishers, IN · Member since 2013 · 10 posts · 2 votes
    11y

    Hi Kevin,

    The threat of special assessments turn some people off, and you also really want to watch the HOA fees. Contact the HOA and ask to see a budget and reserves prior to buying. There are good deals out there but you may want to be conservative with your cash reserves for the reasons mentioned above.

  • Lynn MontangPro Member
    Real Estate Agent · Portland, OR · Member since 2014 · 42 posts · 23 votes
    11y

    OMG! HOA's can be a nightmare! My friend just told me he pays HOA fees, and he was STILL assessed $10K for a new roof! (I would expect that to be part of the HOA reserves- so be wise and do what Robert said, and check!) In my town home that I rent now, but when I lived in it the HOA decided to sue for construction defects and everyone was assessed $22K!! That nearly put me over the edge at the time. In fact 4 homeowners foreclosed. We "won" the lawsuit, and everyone got 10 grand back, but then shortly after had assessments equaling $10 grand anyway.......

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