Condo vs townhouse/house

[Becky Samuel]

Any thoughts on beach condo vs townhome/house for a STR investment property? Looking in Gulf Shores area.

Condos seem more available for purchase, and also often come with better views/accessibility to the beach.  But single homes or townhomes seem to have better value and be perhaps more desirable as a rental property.  Although we would not be able to purchase a home with the same beach views as a condo for similar price.  I know condos also come with more complexity with HOAs, and mortgage terms as well.  Would love to hear any thoughts on pros/cons of each?  Thanks!

[Candace Pfab]

There is very little available here in the way of townhomes that are STR friendly. STR friendly beach homes rent well because you usually have more flexibility on maximizing bed count & parking, but when you compare insurance costs on a single family home vs condo fees, the condo fees become more palatable. Yes, you need to perform your due diligence on the association, but the price point of the condos is usually an easier entry point for a lot of buyers. It really comes down to what price point works for you and choosing the right lender if you go the condo route!