Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 5 months ago,

User Stats

1
Posts
0
Votes
Riz N.
  • Lutz, FL
0
Votes |
1
Posts

Need help deciding between a 3 bedroom Townhome and 5 or 6 bedroom SFR

Riz N.
  • Lutz, FL
Posted

Hi all, I'm buying a new construction via a 1031 exchange as a long term investment property. There are some non-financial reasons for having to buy a new construction that are out of my control, but I'm looking for advice in helping me decide the best route between 3 options (purchase will be all cash): 

Option 1: 3 bed/ 2.5 bath townhome in Wesley Chapel (near the lagoon). It's 1566 sq ft and the cost is about $300K . I believe I can get about $2100 in rent.

Option 2: 5 bed 2.5 bath SFR in Land O Lakes (Connerton). It's not huge at 2200 sq ft for a 5 bedroom house, but they are usable bedrooms. Cost is about $430K. I believe I can get $3000 in rent.

Option 3: 6 bed 3 bath SFR in Land O Lakes (Connerton, same community as option 2). It's about 2500 Sq ft and like the above, the rooms are all usable. Cost is about $460K and I think I can get a $3200 in rent hopefully.

 I've calculated the cap rates and they are all generally similar (~4.5%). I understand that with SFRs, my rent, maintenance, and taxes will be more but that is all factored in.
My reservations with the SFRs are rising insurance and property taxes. However, there are not a lot of homes with that many bedrooms for rent in the area so demand should be better. With the townhome, my reservations is the rental competition as the area has many townhomes communities with units bought by investors, but I like the lower taxes and insurance rates. 

Thank you in advance for any guidance you can provide. 

Loading replies...