New to Real Estate · Vancouver WA · Member since 2023 · 9 posts · 2 votes
Looking for my first real estate investment. Currently would like to buy close to the area I live/work in but housing prices are still pretty high. Was curious to see if anyone has any experience buying a single townhouse rather than a SFH or MFH? Pros? Cons? My goal is long-term rentals. Or should i just bite the bullet and go with a SFH or Duplex.
From a financing standpoint, there isn't a big difference between a Townhome and a SFR. A townhome is actually closer to a SFR than you might think in the process. The biggest difference will be a higher HOA with a townhome and usually a different insurance package, but I certainly wouldn't shy away from a townhome if you find the right deal. Just watch how that HOA fee impacts your overall cash flow.
Perfect, thank you. HOA fees can absolutely play a big impact in Cash flow compared to a SFR. Didn't think about that nor a different insurance package. Thanks for your input Doug.
HOA is the biggest difference vs a SFR or MF. The monthly fees eat into the cash flows and hurt your DSCR ratio. If you're getting it off market and the numbers make sense then go for it. If not, I would look at a SFR or duplex.