I would like to hear about peoples experiences investing in townhouses as a buy and hold investment. I am looking for some help thinking through the pro's and con's.
I usually don't consider townhouses when I invest because of the HOA fees. It's one extra variable I don't have control over, and having them raise the fee at some point could kill my cash flow.
I am new to BP and see very little of buy and hold. A lot of flipping etc which I consider speculation.
I just purchased a 3 level TH in DC that I am dividing into 2 units. What I like is precisely not having condo fees.
I also purchased a larger TH and converted it into 4 units. I live in one of these.
Buy and hold makes sense in areas that will appreciate with time. This is most likely if property is near transportation. Our cash flow is nowhere near what you get with properties mentioned on this site that cost next to nothing. But we have DCR of 1.25 or even 2 in one case, which is what lenders look for.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you