This tenant is looking to take advantage of every angle.

It doesn't seem like I would get any of the  tax benefits of a multifamily, so are there any advantages of owning 3 condos over a multi-family?

Gaining both advantages in taxes and in capital gains (if you’ve occupied the property for 2 of the last 5 years). 

You can stick to the mainstream and go after the same people your competition is (which is totally fine), but you can also build an advantage by figuring out how to capture the fringes that others ignore.I'm not claiming that you *should* do this or that any of this is relevant to your situation since I don't know anything about you, but wanted to at least share the perspective behind how we think about it.

@Ray Danishyar Are there major advantages to that over mail?

Hello,I'd like to build a new home every two years and sell it, to take advantage of the capital gains tax exclusion.  

At that point, I want to refinance and take advantage of the low rates (hopefully still low), as well as start the clock on my last year at that house so I can move and get another primary residence loan in 2023 and keep the low rate as I convert it into a rental(estimated rent $1200, mortgage payment $700).

So by doing it as $500 plus utilities, you will get more applicants.Another problem with including it in the rent is people will take advantage of it (turn up the heat and leave the windows open).

However, this is a very small set of communities; most townhouse communities do not perform well for various reasons.Another advantage of townhomes is financing.

I see lots of investors taking advantage of accelerated and bonus depreciation to offset or significantly reduce their tax exposure on their sales.Happy to elaborate.Happy hunting!