Comparing 3br house rent profit to 2 br townhouse................

[Account Closed]

Let's say there is a 3BR/2BA house in the exact same neighborhood just a few streets down from a 2BR/2.5BA townhouse. 

The 3BR house is a single floor house with NO views. 

The townhouse has stairs (obviously since it is a townhouse) and this particular one has 3 flights of stairs but this townhouse has REALLY nice views on both the first floor and the master bedroom. Let's say both the properties are freshly renovated.

In general... is it safe to say the 3BR house will rent for 1+k/month MORE than the townhouse even though the townhouse has nice views and is a smaller in size?

I wonder because I hear most people do not like stairs (I love stairs guess I'm weird!) but perhaps for this reason (and liability reasons) it seems this townhouse would get significantly LESS rent profit per month than a 3br house and the fact that the townhouse is only 2BR?

I know this is difficult to access because I can't leave the property addresses here... but I am wondering just in general... to me it seems it would be a huge MISTAKE to choose a 2BR townhouse over a 2BR HOUSE when investing in rental properties?

[Rodney Sums]

Quote from @Account Closed:

Let's say there is a 3BR/2BA house in the exact same neighborhood just a few streets down from a 2BR/2.5BA townhouse. 

The 3BR house is a single floor house with NO views. 

The townhouse has stairs (obviously since it is a townhouse) and this particular one has 3 flights of stairs but this townhouse has REALLY nice views on both the first floor and the master bedroom. Let's say both the properties are freshly renovated.

In general... is it safe to say the 3BR house will rent for 1+k/month MORE than the townhouse even though the townhouse has nice views and is a smaller in size?

I wonder because I hear most people do not like stairs (I love stairs guess I'm weird!) but perhaps for this reason (and liability reasons) it seems this townhouse would get significantly LESS rent profit per month than a 3br house and the fact that the townhouse is only 2BR?

I know this is difficult to access because I can't leave the property addresses here... but I am wondering just in general... to me it seems it would be a huge MISTAKE to choose a 2BR townhouse over a 2BR HOUSE when investing in rental properties?

 FYI stairs don't make a property a townhouse.  Do a search on townhouse vs condo to get a full description.

It's not safe to say a 3br house will automatically rent specifically for 1k more than a 2br townhouse.  It depends on what house and townhome you're comparing.

More rent doesn't always mean more cash in your pocket.  You'll have to run the numbers and see which performs better.  

Choosing a townhouse over a detached home does not automatically make it a mistake.  Each has pros and cons over the other.  You'll make comparisons and run numbers to decide which is the better investment.

[Joe Villeneuve]

Quote from @Rodney Sums:

Quote from @Account Closed:

Let's say there is a 3BR/2BA house in the exact same neighborhood just a few streets down from a 2BR/2.5BA townhouse. 

The 3BR house is a single floor house with NO views. 

The townhouse has stairs (obviously since it is a townhouse) and this particular one has 3 flights of stairs but this townhouse has REALLY nice views on both the first floor and the master bedroom. Let's say both the properties are freshly renovated.

In general... is it safe to say the 3BR house will rent for 1+k/month MORE than the townhouse even though the townhouse has nice views and is a smaller in size?

I wonder because I hear most people do not like stairs (I love stairs guess I'm weird!) but perhaps for this reason (and liability reasons) it seems this townhouse would get significantly LESS rent profit per month than a 3br house and the fact that the townhouse is only 2BR?

I know this is difficult to access because I can't leave the property addresses here... but I am wondering just in general... to me it seems it would be a huge MISTAKE to choose a 2BR townhouse over a 2BR HOUSE when investing in rental properties?

 FYI stairs don't make a property a townhouse.  Do a search on townhouse vs condo to get a full description.

It's not safe to say a 3br house will automatically rent specifically for 1k more than a 2br townhouse.  It depends on what house and townhome you're comparing.

More rent doesn't always mean more cash in your pocket.  You'll have to run the numbers and see which performs better.  

Choosing a townhouse over a detached home does not automatically make it a mistake.  Each has pros and cons over the other.  You'll make comparisons and run numbers to decide which is the better investment.

I wanted to cast 4 votes for this post.  One for each comment in your list.  They only let me cast one.

[Nathan Gesner]

Single level is more attractive than multiple levels and stairs. There are some people that hate stairs, some are physically incapable, and some just don't like them. Other think stairs are great, but they are few in number.

Single family homes have more privacy whereas townhomes and condos have shared walls, floors, or both. Townhomes typically have less land for private yard space, garages, and other benefits.

Townhomes and condos are usually controlled - sometimes heavily - by a homeowner's association that sets rules, monitors them, and enforces them. The quality of an HOA can turn on a dime based on who's running it and their fees can - and will - increase over time.

In general, a home will rent for quite a bit more than a townhomeor condo. As Joe pointed out, that doesn't necessarily mean you'll make more money.

[Donna M.]

I would always buy a 3 bedroom over a 2 bedroom.  More rent. In what city and state can you get $1000 more for the extra bedroom?  I prefer 1 level villa over 2 story Townhouse.  Will be easier for you to maintain.  Plus 1 less toilet to repair.  Some people will pass on renting a townhouse because of bad knees.

[James Hamling]

How about HOA vs no HOA, I'd say that's probably the WAY bigger factor on stand-alone vs townhome!

@Account Closed there is so much missing in this, just the way things are presented, I don't know where to start or how to reply in a way that doesn't involve considerable forehead and eye rubbing. I think you'd find much value in connecting with a local Realtor, ask him buy him lunch to discuss a few things on properties (because your gonna need them in a captive setting, lol) and then just get it all out, be ready for eye rolls or frustration, I am just being brutally honest here, but you will learn. Then rinse & repeat this process until have fair comprehension of these things in that market. 

For myself, for a SFR, I will take the HOA property every time. It's my style and experience that it's just a best setting for getting things too "cash-cow" status. This is assuming it's one I want to keep, if have a 3-5-7 plan then I will go where equity will best accrue.

[Account Closed]

Quote from @James Hamling:

How about HOA vs no HOA, I'd say that's probably the WAY bigger factor on stand-alone vs townhome!

@Account Closed there is so much missing in this, just the way things are presented, I don't know where to start or how to reply in a way that doesn't involve considerable forehead and eye rubbing. I think you'd find much value in connecting with a local Realtor, ask him buy him lunch to discuss a few things on properties (because your gonna need them in a captive setting, lol) and then just get it all out, be ready for eye rolls or frustration, I am just being brutally honest here, but you will learn. Then rinse & repeat this process until have fair comprehension of these things in that market. 

For myself, for a SFR, I will take the HOA property every time. It's my style and experience that it's just a best setting for getting things too "cash-cow" status. This is assuming it's one I want to keep, if have a 3-5-7 plan then I will go where equity will best accrue.

Thanks for your reply... you mentioned "For myself, for a SFR, I will take the HOA property every time". Are you referring to SFH as an investment rental or your primary residence? I personally want to avoid HOA at all costs!

[James Hamling]

Quote from @Account Closed:

Quote from @James Hamling:

How about HOA vs no HOA, I'd say that's probably the WAY bigger factor on stand-alone vs townhome!

@Account Closed there is so much missing in this, just the way things are presented, I don't know where to start or how to reply in a way that doesn't involve considerable forehead and eye rubbing. I think you'd find much value in connecting with a local Realtor, ask him buy him lunch to discuss a few things on properties (because your gonna need them in a captive setting, lol) and then just get it all out, be ready for eye rolls or frustration, I am just being brutally honest here, but you will learn. Then rinse & repeat this process until have fair comprehension of these things in that market. 

For myself, for a SFR, I will take the HOA property every time. It's my style and experience that it's just a best setting for getting things too "cash-cow" status. This is assuming it's one I want to keep, if have a 3-5-7 plan then I will go where equity will best accrue.

Thanks for your reply... you mentioned "For myself, for a SFR, I will take the HOA property every time". Are you referring to SFH as an investment rental or your primary residence? I personally want to avoid HOA at all costs!

SFR = Single Family Rental. As an investment property love Love LOVE HOA Townhomes!

In single family rentals do you know what the #1 pain in the azz is, the exterior care of the property. Do you know how often I get a prospective tenant who's excited or pumped about mowing the lawn or doing snow remove? Never. 

With HOA, I get the entire exterior covered, all the services, and it's a marketable positive I can charge for, so HOA fee is a net 0 or net profit for myself actually. AND in HOA's, I most often get a free caretaker also, because most every HOA has "that person" right, the neighborhood "Nancy" who's on everything. Do you how much her eyes light up when I ask her to please help keep an eye on my place, lol, It's like I just confirmed her whole reason for existing, lol.

Not to mention, know what sells awesome in a down economy? Townhomes. Know what sells awesome in a red-hot economy? Townhomes. Know what rents awesome? Yeah buddy, TOWNHOMES! 

So yeah, 0 thought or work for anything exterior, free caretakers, great liquidity in all market directions, great tenant desirability, yeah, HOA Townhomes all the way!

[Account Closed]

Quote from @James Hamling:

Quote from @Account Closed:

Quote from @James Hamling:

How about HOA vs no HOA, I'd say that's probably the WAY bigger factor on stand-alone vs townhome!

@Account Closed there is so much missing in this, just the way things are presented, I don't know where to start or how to reply in a way that doesn't involve considerable forehead and eye rubbing. I think you'd find much value in connecting with a local Realtor, ask him buy him lunch to discuss a few things on properties (because your gonna need them in a captive setting, lol) and then just get it all out, be ready for eye rolls or frustration, I am just being brutally honest here, but you will learn. Then rinse & repeat this process until have fair comprehension of these things in that market. 

For myself, for a SFR, I will take the HOA property every time. It's my style and experience that it's just a best setting for getting things too "cash-cow" status. This is assuming it's one I want to keep, if have a 3-5-7 plan then I will go where equity will best accrue.

Thanks for your reply... you mentioned "For myself, for a SFR, I will take the HOA property every time". Are you referring to SFH as an investment rental or your primary residence? I personally want to avoid HOA at all costs!

SFR = Single Family Rental. As an investment property love Love LOVE HOA Townhomes!

In single family rentals do you know what the #1 pain in the azz is, the exterior care of the property. Do you know how often I get a prospective tenant who's excited or pumped about mowing the lawn or doing snow remove? Never. 

With HOA, I get the entire exterior covered, all the services, and it's a marketable positive I can charge for, so HOA fee is a net 0 or net profit for myself actually. AND in HOA's, I most often get a free caretaker also, because most every HOA has "that person" right, the neighborhood "Nancy" who's on everything. Do you how much her eyes light up when I ask her to please help keep an eye on my place, lol, It's like I just confirmed her whole reason for existing, lol.

Not to mention, know what sells awesome in a down economy? Townhomes. Know what sells awesome in a red-hot economy? Townhomes. Know what rents awesome? Yeah buddy, TOWNHOMES! 

So yeah, 0 thought or work for anything exterior, free caretakers, great liquidity in all market directions, great tenant desirability, yeah, HOA Townhomes all the way!

Thanks so much for your reply! I live in AZ so there is NO lawn to mow and no snow to shovel. So I don't see what else would need to be monitored so often on the outside?

I am very worried I am making wrong decision buying 2BR townhouse rather than a 3BR SFH. It also appears a 3BR SFH will appreciate MORE than a 2BR townhouse!?

I am not too worried about the exterior of property... I lived in 3BR 2B house for 20 yeas in FL... and the exterior was handled with lawn service and I really didn't have any other serious issues as I lived in SFH most my life in more than one property which went through numerus hurricanes.

I am more worried about the appreciation factor between the two property types :( 

I am a LOT more worried about the INSIDE of the property.. tenants destroying things.. happened more than once to my mom's rentals it was horrific!!!