New Townhome or Older Single Family home (Which is better?)

[Brad Johnson]

Looking for other peoples opinions on what would be a preferred SFR investment property as a buy and hold.

Option A: New (0-3 year old) 3 story townhouse (garage on the first floor with no personal driveways) 

Option B: Average semi updated ranch built in the 60-70s with carport/detached garage. 

[JD Martin]

Neither. All depends on ROI. How much does a new 3 story townhouse cost and how much does it rent for? How much does a 70's SFH cost and how much does it rent for, and what repairs/updates does it need?

The new townhouse is going to push your capital expense costs down the road. You're also probably going to pay for that convenience. The 70's house probably needs some work right now. Hopefully you're getting a discount for that reason. 

Hypothetically, if both units rented for the same amount of money and cost the same to purchase and fix up, and were in similar neighborhoods, I would probably take the SFH just because in general hierarchy is SFH>Townhome>Condo>Rental SFH>Rental Apt>Trailers/tents/underpass in terms of desirability and appreciation. There's exceptions to everything, though, and that's why you need to understand your own market.