Townhouse VS Single Family Home?

Question

I've been considering  moving out of state and debating on moving into either a single family home or a totownhouse. As a single guy with no kids, I'm still trying to learn if a townhouse is like an apartment where I rent but never own?

Jeremy Melloul · Answer

Hey Sam-

Pretty exciting to make a decision to move. I was in LA, too, and left 2.5 years ago. Def glad I did. Where are you thinking about going?

As far as townhouse vs detached SFH. If you prefer lower maintenance and maybe some shared community perks, a townhouse could be a solid choice. But if you want a bigger yard and more privacy, a single-family home might be the way to go. It really comes down to your lifestyle and what matters most to you. I would buy a Duplex and house-hack that bad boy. Let me know if you want to talk more about your options. btw, where in LA are you?

Bill B. · Answer

If you buy the townhome you’re not renting. If you rent the SFH you’re renting not buying. The property type has nothing to do with if you’re buying or renting.

Imagine a SFH with 1-3 shared walls, that’s a townhome. Cheaper to build, usually cheaper to buy, possible to have more “neighbor problems”. Either because you share a wall or have a smaller yard separating the two homes.

Kerlous Tadres · Answer

Hey Sam!

I would recommend buying at least a duplex and house-hacking that. That will help teach you about investing and rentals a lot. Plenty of good house-hack opportunities in Columbus, Ohio

Andres Montbrun · Answer

Hey Samuel, this is a great thread—thanks for sparking the discussion. From my experience, the choice really hinges on your long-term goals. Single-family homes often offer more flexibility for upgrades or adding an ADU, which can boost rental income and overall value. Townhomes, on the other hand, tend to be lower maintenance and have the perks of an HOA, though that can also mean some restrictions and shared expenses.

I'm curious—how are you weighing lifestyle versus investment potential in your decision? Looking forward to hearing your take! to know how you weigh. I'm looking forward to hearing your take!

Jimmy Lieu · Answer

Hi Samuel, I've done the exact same - moved from Portland OR to Columbus OH to invest in real estate myself and it's been the best decision I've ever made. I believe you're referring to house hacking, which you live in one unit of a duplex and then you rent out the other side and try to minimize your living expenses (or to live rent-free!). I did the exact same thing when I moved and bought a 4/2 SFH and rented out the bedrooms to other roommates and was living for free.

If you're looking for a new real estate market, I do recommend Columbus Ohio! The macroeconomics look extremely good here - population is growing, job growth is growing, and so many companies moving and developing here. Look at Intel headquarters, Google, FB, Amazon, Nationwide, Microsoft, LG, Honda, etc. Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and it's super landlord friendly (so you will never have to go through a 12 month eviction or anything close to that!). Lastly, the price point is still very cheap here in the sense that you can still find investment deals that hit the 1% rule for 120-180k! Happy to connect and answer any questions you have!

Rick Albert · Answer

There is a lot to consider. I've house hacked a condo and a single family home where I built out an ADU.

1. You own the townhouse but have rights to use the land and common areas.

2. The pros are technically less maintenance and you can provide amenities that you may not otherwise provide if you own a single family home.

3. The biggest con right now is I'm seeing a lot of HOA communities struggling financially. With people working from home, the shared water bill is up there and maintenance is coming due because of the age of some of these communities. Many HOAs are seeing special assessments (one time charges) and HOA dues increasing.

4. A single family home you have a little more flexibility since you own the structure and the land. Things like doing additions, adding ADUs, etc. give you more flexibility to increase your ROI.

5. The big con with SFR is you are responsible for everything from roof to sewer line. That work can get very expensive very fast. Good news is you replace the sewer line and it is generally good forever and roofs are generally good for about 30 years, especially in LA where we don't have the harsh weather.

It will depend on your goals and also cash available. Both can work really well and I've seen it work with investors.

Sam McCormack · Answer

Where do you think you will be going to? I would say, go about it by where you're going. If your price range only allows you to have a SFH, then get the SFH and live in the basement and rent the house itself. Or if you can, get small multifamily! It really depends on your max price range and where you're going

Bradley Buxton · Answer

@Samuel M.

A townhome generally has an HOA, a smaller yard, and possibly a shared wall. This can be a good choice if you do not want yard maintenance and the benefits that come with an HOA, such as a pool, insurance, and building maintenance. You also get the downsides of the HOA rules with restrictions on what you can do such as short-term rentals. Neighbors can be lame anywhere. Single family or detached homes you are in control and pay for everything. There are tradeoffs to either and both can be successful rentals.

Townhouse VS Single Family Home?

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