Townhouse or House as first rental

[McKenzie Benson]

I will be attempting to acquire my first rental property in the next month or so in the Houston area. I have been listening to the Podcasts and I believe I will try to use an investor to assist in buying the property so I don’t have to spend so much out of pocket. There are townhomes in the Houston area that are in good condition that I can purchase for around $45K. There are also homes that can be purchased for a little more than that price point. Which direction should I go townhouse or small home?

[Ali Boone]

I don't usually care if I'm buying a townhouse or a house (unless any townhouse fees negate too much in profits), but I'm bigger on quality. $45k is really cheap and I try to stay away from cheap. Unless it's just some amazing deal for Houston, usually that cheap suggests lower quality areas, lower quality tenants, and therefore more problems and expenses. Just a personal preference though! For a first investment, don't go too deep into tenant problems if you can avoid it.