I'm looking working on permitting a small multifamily rental project in the Boston suburbs. It's an infill site, so the number of units is limited by parking and dimensional constraints, but it looks like we could get somewhere around 16 units in a townhouse layout or 24 units in a garden style layout. This would be a develop and hold project for us.
Does anyone have any knowledge of the different long-term ownership/management costs between a townhouse style vs. garden style project. My hunch is that the townhouses would have lower maintenance costs because there is no interior common areas/hallways to heat or maintain. My sense is they would also be more attractive as each unit would have a separate entry. But other perspectives would be appreciated.
Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
7y
@Jay Vance - when you run your projections, which comes out better? All else being equal, I'd go for the TH because... you don't have to do them condo, you can go PUD.
Thanks for the insight on condos. Not sure whether it’s the same here in Mass. But it’s definitely worth thinking about the ease of selling individual townhouses vs individual condos if we were to condominiumize and sell as an exit strategy.
The proformas look pretty much the same, but I am assuming the same annual per expenses unit expenses in both scenarios. If either townhouse or garden is significantly cheaper in annual maintenance or other expenses, that would help drive the decision.