Townhouse vs SFH evaluation

[Yesh Ravi]

First time investor here. People experienced with townhomes and SFH, which one do you consider to be good for buy and hold (and cash flow of course).

I'm evaluating this for NW Indiana.

Townhome

New construction

180,000 - 220,000

Rent : 1700/mo

HOA $90/mo includes lawn and snow removal

SFH

270,000 - 350,000

about 35 years old homes

Rent : 1700/month

Repairs, lawn and snow additional

[Yesh Ravi]

Originally posted by @Brad Bellstedt:

Going only off of the information given, the TH is the better buy. If it's truly brand new you likely have a 1 year "bumper to bumper" warranty from the builder and a 5-10 year warranty on the appliances which means very few expenses for you in the way maintenance and CAP-X especially when compared to a 35 year old structure which will certainly command a higher allocation of funds for those purposes. In addition, as you mentioned with the townhomes, the HOA is responsible for the upkeep of the grounds. Even with the $90/month HOA fee it sounds like your ROI and break even points for the TH are better. (I did not to do the math but you should)

Thanks for replying, Brad!