I have been looking to buy my first rental property for some time now; however, I also need a place to live and don't want to throw money away by paying rent. I'm a recent graduate with a job in the Dallas, TX area. I've been looking for a cheap house to live in, then eventually rent it out and move on to the next. I keep coming across pretty nice neighborhoods with a good amount of townhouses available for about $100-$150k (my price range).
So my thought is buying one of the cheapest houses to live in and flip over time, and eventually acquire the capital to buy more in the same neighborhood so I can easily manage them. I'd like to hear y'all's thoughts on this strategy and townhouses in general.
And I know the word townhome/townhouse can mean a couple of different things, so I'll clarify what I'm talking about. The townhouses in this specific neighborhood are basically duplexes, just two-story condos paired up on one lot.
Thanks for reading and looking forward to your responses.
Hey Lance, what part of Dallas? I used to live in Addison and Richardson. Most people will tell you to stay away from anything with an HOA. There's alot of uncertainty and loss of control once you start getting into condos/townhouses. Me personally, i dont care as long as the numbers work. I also dont have near the experience as alot of the wise people on BP. Some of the people have done 100 or more deals and stear clear of anything with an HOA. Josh Dorkin is pretty clear on his stance against HOAs.
Hey Lance, I just came across this post. I was looking at a townhouse myself and had similar concerns. I just wanted to follow up and see what you ended up purchasing. Thanks!
Instead of buying a town house that is a condo why don't you buy a duplex that is a side by side and jist looks like a town house but is a free standing 2 floor or 3 floor duplex with no condo fees. Aren't these the same price as a town house condo???
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