Townhouses in Miami, good investments?

[Account Closed]

I live in Miami, West Kendall area, and have been analyzing deals in this area. I will be using a VA home loan so the house does need to be in a livable condition. I also plan to rent out the spare bedrooms at around 600 each which should cover a lot of the mortgage. I know the general advice is to avoid townhouses, but houses here run around $200k and townhouses can be found for around $150k. I have rented a townhouse before and the complex seems to be fully rented all the time, as do other complexes, given the shortage of affordable housing in Miami. Prior to me renting the townhouse the family that lived there before had lived there for many years so these aren't temporary housing, at least in Miami.

Has anyone invested in townhouses here for rentals with success?

[Aaron K.]

While an HOA would likely have no problem with you renting out an entire unit they are more likely to have a problem with you renting out extra bedrooms, make sure you are allowed to do that before any purchase. Also be aware that HOA fees can eat your returns alive and if you were to apply HOA fees to a mortgage in many cases you would be able to afford a far more expensive SFR with no HOA. For example I have seen $200-$300 a month HOAs that kill condos/ townhomes for investment purchases.