Get in the market NOW with townhouse or hold out for a SFH

[Erwin Li]

Hello everyone,

This is my first post and I have been learning about real estate investing for the last 6 months. I am ready to start my journey into real estate investing and I have started to make some moves.

Currently I have a 3br 4ba townhouse under contract and working through my way to close on the deal. This townhouse should be able to cashflow $300-500 per month with an initial investment of $97k. It is in an ideal area with tons of amenities close by.

I am having cold feet on this deal because of the type of property it is. The property is a townhouse in a strata complex and I have worries around if this is a good option for my first property. Reading through the forums many investors say that a SFH is a better option.

Part of me wants to hold out and see if I am able to find a SFH with a basement suite as my first investment property, this way it allows me to potentially live in one suite and rent the other or rent both.

The other part of me thinks that I shouldn't worry about getting the best deal, but rather get into the market. Especially with how much the 2021 assessments came back I am worried about being priced out of the market in 2022 if I wait too long to purchase.

To give some idea on prices in my area 3br townhouses are going for around $400-550k and a SFH with suite potential will run around $650-800k.

My investment goal is to find something that will cashflow, but also something that may help me in the future to purchase another property. Ideally I would like in 5-7 years to have one primary residence and 1-2 rental units. I love my day job so anything more than 1-2 rental units may take up too much of my time to manage.

Thanks!