Small house, condo, or townhouse

1 Reply

I'm looking to get my first property and I have limited funds for a down payment I'm looking to do buy fix and rent. After looking at the market (AZ) I am pretty much looking at a condo a town house or a small 2 bdrm house. I want to stay in a better area rather than going to a rougher area for a bigger place. Which of the 3 would be a good investment for my first property? And any advice on ease of land lording between the 3 

Thank you ahead of time. 

Think of the property that can differentiate itself from the others. Condos and townhomes are all at the mercy of the most recent sales in the complex and it is hard to really make your particular unit stand out because they are all essentially the same, except with different upgrades. In addition, you have the issues of HOA fees, special assessments, fines because of tenants breaking rules and regs of association, and rental restrictions imposed by the HOA. If too many units are rentals in your condo/townhome complex it may keep potential buyers from being able to get a loan, because the lender can't package and securitized, and sell to either Fannie, Freddie and FHA. This lessens your pool of buyers when you choose to exit your investment. In my opinion a SFH or multi unit is your best bet.

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