Condos a bad idea long term?

[Jason Green]

Ok guys I have heard several people say that condos and townhouses aren't as good long term as SFR. There is a townhouse development in my city (Birmingham, AL) that is fabulous location, built about 4 years ago. They are loft style 3/3 and are very hip and high end. This development only had about 10% of the total units as 3/3 so they are pretty rare to come on the market. Each bedroom has an ensuite bath which I assume would be a major plus for rental if you had a 3 roommate situation.

I can buy these units for $175,000 each with 25% down (banks requirements for investment) at 30 year and cash flow about $475/month on each unit. So my cash investment would be about $98,000 with a cash flow of about $950/month. I think this is a pretty solid return Cash on Cash but certainly not going to set the world on fire.

My question for you guys is, as a long term hold value, am I better off in single family? There is a community of SFR near me that are notoriously good rentals in a great school district and the entry price point is roughly the same. I am just trying to figure out from a long term value play would I be better off in the attached deal or the single family deal.