Townhome or Single Family Home

[Randolph Bartholomew]

I am debating whether or not to make a purchase on a single family home or town home property. Wanting to use this property as a rental, my question is whether or not a town home property will be a better investment. After research I did find the maintenance on a town home was less then a single family home. 

The area interested in purchasing Tampa/river-view Florida or potential Wesley chapel Florida

[Tom Parris]

Hi @Randolph Bartholomew,

First off, you have a fantastic name. 

There's give and take in both. Your capital expenditures are typically increased in a SFH because you're in charge of the roof. Your insurance costs are higher, and maintenance requests could be increased also. I think you'd have to make your house much more tenant friendly, by making it indestructible with tile floors. Your tenants typically stay longer, but they can be harder to get. I say that because your tenant would have to pay for all utilities and cut the lawn.

I like townhouses more, because the HOA could cover your roof, your insurance costs are typically lower and you get to market things included in the HOA. So a tenant can enjoy not having to pay for water, sewer, trash, lawn maintenance and get to enjoy any community amenities. Your tenants may not stay as long, but they rent quicker.

I'd be happy to answer any more questions. By day I help my clients buy and sell their properties, and am involved in our brokerage's property management. I own two investment condos, and I'm on track to build 7 spec homes this year.