Townhouse as rental

[Rami Layous]

Hey!

What is you're take on purchasing a townhouse as my first rental property. What is the downside? is it better to look for a single family detached house instead?

First time investor here :)

[Patricia Steiner]

It depends...a few questions:

Is it fee simple?  (If not, I would pass).

What is the HOA fee/special assessments/budget?

Is there outdoor space?  Adequate parking?  Walkability to shopping, dining, parks?

What does the market tell you in the demand for townhouses as rentals and what the rental price within a 1-3 mile radius is for that property type?

Who would be your tenant?

Most townhouses in my market are not good rental opportunities - but I would certainly consider one near a hospital in a price point that would attract medical residents, physicians.  Gotta do the vetting.