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Updated almost 3 years ago on . Most recent reply

Account Closed
  • Investor
  • Colorado
8
Votes |
36
Posts

Am I CRAZY to buy 2br townhouse when I could buy a 3br house?

Account Closed
  • Investor
  • Colorado
Posted

I am about to buy a 2BR/2.5BA townhouse (has $216/month HOA). It has AMAZING views because the 1st floor is above the garage so this means the 1st floor is technically on the "2nd floor"... and the master bedroom on the top floor has AMAZING views as well. I will be living in this house for least least a few years... I will be there for quite some time... LESS than 10 years though.

I have searched and searched for other properties and in my price range it is NOT realistic for me to find another property like this and its amazing views. 

PROBLEM is that I am worried I will REGRET buying this townhouse because I plan to rent it out (after the mortgage is fully paid off) when I move. I am very worried because it is a 2BR townhouse rather than a 3BR house AND since this townhouse has 3 flights of stairs I am worried that I will have great difficulty renting it out. Because families want 3BR.. and retires do NOT want to deal with stairs.

So I am not sure what to do now! I have to make up my mind by tomorrow because the sellers has changed her mind TWICE about selling this property and I need to get back to them asap before she changes her mind again. I REALLY like this townhouse a LOT but worried I am being stupid getting it rather than a 3BR house.... it will take me a very long time to even find a 3BR house to buy since I want to buy it in a very specific area... I COULD buy a 3BR house instead of this townhouse but the house will NOT have the amazing views etc... but I am worried I am being STUPID here getting 2BR townhouse instead of 3BR house!

Most Popular Reply

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57
Posts
39
Votes
Kenneth Rolfe
  • Boise, ID
39
Votes |
57
Posts
Kenneth Rolfe
  • Boise, ID
Replied

If you haven’t already done so, I would reach out to a property manager to get insight on how the townhouses in that area compare to single family houses when it comes to rental demand.

You should also be able to get insight from your realtor on how townhouses appreciate compared to single family houses in the area historically.  

While I would say in general it’s typically better to go with a single family home if you can, this can be very specific to the area so best to get local expertise.

At the end of the day it sounds like you need to just decide what your primary focus is for this property.  If it is to find a place you love to live in and will work long term as an investment you might make one decision, if it is truly to maximize your investment return, it might be a different answer.  But first you need to do your due diligence with those goals in mind.


Good Luck!

  • Kenneth Rolfe
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