Townhome vs Single Family Homes, other types of housing?

[Eric Petersen]

Hey everyone,

I'm freshly getting into this whole "buy and hold" strategy. My area in Provo, UT has a ton of Townhouses and Single Family Homes. These types of properties exist very close to two universities. I am single male and I see the advantage to buying my first place next to one of these universities and renting out the rooms to students. I would live in it for the first year as an occupying home owner.

I am curious as to everyone's opinions to the advantages and disadvantages to owning a townhouse vs a single family home.

Thanks!

[Mike D'Arrigo]

I don't like townhouses because of the HOA's. They're an unnecessary expense that cuts in to your cash flow. If you're going to buy a condo or townhouse though, request a copy of their CC&R's and operating budget. You want to make sure they have adequate reserves for deferred maintenance and CAP Ex. Personally, I think SFR is the better way to go.