Townhome vs SFH for first time. Pros and cons

[Joe B.]

Hey all

Im sure this question is asked 100 times a day, but it would give me a peace of mind if my specific question was answered. As I continue to save for another few months I am heavily looking into purchasing either a townhome or a SFH; a duplex is rare in my area and the only ones available are in bad areas. I would be using a FHA loan which would require me to live in the property.

My parents are heavily against the idea, but for 2 years now this is something I wanted to get in to. My goal is to own 10 properties by the time Im 38. (26 now, set high goals right? :) ) I feel motivated that they are against it, more of an incentive to succeed. So BP, what are your thoughts on SFH vs townhomes? Both in my area can be purchased for relatively the same amount.

-What do you prefer and why?

-Are these crazy "assessment" fees something that actually happen?

-What will be easier to rent out in your opinion? (just looking to househack)

-Appreciation?

I am very good when it comes to saving, if I minimize how much I put away for investments I can net about 2k a month in savings; and im thankful to be living at home still. Looking to go ahead and do it by the winter

Thank you all  

Joe

[CJ Ashton]

If you are purchasing a Townhome or Condo, pay heavy attention to the HOA fees. They are usually much higher than an SFH that resides in an HOA neighborhood. Also, if you'd really like to do some due diligence, attend an HOA meeting and see if they will let you look at or discuss their financials. In my experience in the Phoenix metro area, a very large percentage of the townhome and condo associates and not really that financially healthy. When they aren't healthy and don't have the proper reserves saved up that leads to large assessments.

Some condo/townhome associations put restrictions on the ability to rent out your property and if it is allowed, sometimes make it a hassle (you must pay $50 to register your tenant each year, etc.)

I'm partial to SFHs, but that comes with its own set of risks as now you are responsible for the entire building and lot, not just what's on the inside.