Can Townhomes get a better ROI than SFH’s?

[Reagan Huefner]

I've been looking into townhomes in my area. They have a much lower purchase price than SFH's in my area, but the rent is similar. As a new investor the numbers on townhomes look very good as an entry into Rental/BRRRR investing.

What are some of the advantages and disadvantages to investing in town homes?

[Nam Trang]

Do you see yourself wanting a single family house sometime in the next 5-10 years? If so, I would probably save up more or whatever you have to do to get into a SFH now instead of hoping your townhouse appreciates enough for you to "upgrade" later. They each have their pros and cons. Townhouses are usually less work because the HOA does at least the outside maintenance for you. On the other hand, you get less privacy and less freedom to do what you want on your own property. Houses are generally more work but provide more freedom and privacy.