Rental Option

[Javar R.]

Hey BP,

Debating which route would be more profitable as a rental property.

Option 1 is a cheap 3br townhouse with HOA in need of new floors in a great neighborhood. Option 2 is a 3br house in a slow market with minimal updates. I don't know which to buy. What is the ideal purchase for a possible long term rental with the challenges of ever selling either?

[JD Martin]

Neighborhoods are king where I live in terms of renting property. How expensive is the HOA fee, and would you pay it or the tenant? When the property is vacant, that is an additional expense you will have to eat. What are the possibilities of the other neighborhood coming up in value?

Based on the limited information you posted, and just between these two, I would have to go with the townhouse, so long as the HOA fees were reasonable.