Townhome or single-family for a rental?

Question

Looking to purchase my first rental. Where I live here in Salt Lake Utah in my price range I'm seeing more townhomes and single-family's. Is one better than the other we're having an advantage ?

Kody Thompson · Answer

It just depends on the location and the rent rates in that location. Id look further south in Utah county  or up in Davis County if you are looking for cheaper home or townhome prices with similar rent rates.

Amy Kendall · Answer

I don't think it really matters too much between a single family and a townhome for your first investment property.  From my experience, I started with single family homes and then moved more into townhomes.  I liked single family homes initially because they did not have an HOA and my cash flow was a little higher.  Now, I tend to prefer a townhome with the HOA because they do maintain the yard, exterior of the building, and offer some good benefits to your renters, like possibly a pool.

Becca Summers · Answer

@Blake Valdez For me personally I like single-family homes for rentals as the rental pool is a bit larger and you can make more allowing pets which is another topic to debate if it's worth it. Also no HOA's and extra rules on rental regulations. It makes it quicker to analyze if the numbers work.

The pro to a townhome is you can typically get a newer townhome for the same price as an older home which helps with the maintenance side of owning rental properties. Plus no roof replacements as the HOA should have that budgeted when the time comes. Just make sure you buy into a community that is well managed and has good reserves.

Blake Valdez · Answer

@Amy Kendall Amy that makes total sense I looked at some townhomes today in Saratoga springs and ones already been rented for 2200 for a four bedroom three bathroom so that is pretty awesome. Thank you so much for the reply info￼￼￼

Blake Valdez · Answer

@Kody Thompson thanks Kody! I'm actually looking in Saratoga springs so Utah County area rents are pretty high for a four bedroom three bathroom is around 2200

Bill Goodland · Answer

@Blake Valdez which is more in demand from renters? Which has more inventory? Which do you expect to appreciate more? Which on average looks like it has been price to rent ratios and would the expenses such as landscaping or HOA fees make either significantly different? These are the questions you need to ask yourself before asking others which you should buy

Blake Valdez · Answer

@Becca Summers that all makes total sense appreciate your feedback and for replying

Townhome or single-family for a rental?

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