Single Family Home vs. a Townhome - Posted by Liz

import · July 15, 2003, 6:31am

Posted by GL - ON on July 16, 2003 at 09:12:55:

I was talking about condo townhouses where you own the townhouse but not the land.

I don’t like condo apartments as an investment.

A townhouse on its own lot would be about the same as any other house as an investment.

import · July 15, 2003, 6:31am

Single Family Home vs. a Townhome - Posted by Liz

Posted by Liz on July 15, 2003 at 06:31:43:

Which is a better investment and why???

Thanks!

~Liz

import · July 15, 2003, 11:19pm

Re: Single Family Home vs. a Townhome - Posted by GL - ON

Posted by GL - ON on July 15, 2003 at 23:19:29:

A townhouse rents for almost as much as a house but is a lot cheaper to buy. This means that when a rental house has negative cash flow a townhouse will break even or have positive cash flow.

But watch out for condo fees. Find out how much they are and how good the management is. If the fees are high but the management is poor, don’t buy.

The condo fees cover the maintainance of the outside of your condo, grass cutting and even roof repairs and painting. So there is less managing to a condo.

On a percentage basis they both go up together with inflation.

If you are thinking of living in it yourself and not renting it out then it’s a matter of picking one you like and can afford, either house or townhouse will do equally well.

import · July 15, 2003, 2:47pm

Re: Single Family Home vs. a Townhome - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 15, 2003 at 14:47:18:

Liz-----------

I’d suggest there is little difference. However, focus on the financials. Look at the costs and the income. Don’t most townhomes have homeowner association fees? How does that impact the costs?

Good InvestingRon Starr

import · July 15, 2003, 9:49am

Re: Single Family Home vs. a Townhome - Posted by Ron

Posted by Ron on July 15, 2003 at 09:49:34:

Both are an equally good investment, what you might need to look at is the difference in maintenance and /or renovation needed. also the area and consider the maintenance the tenant will need to do while living in the home. such as grass cutting ect…

import · July 16, 2003, 4:27am

Re: Single Family Home vs. a Townhome - Posted by Liz

Posted by Liz on July 16, 2003 at 04:27:24:

Thanks for your input. I don’t think we will be buying any condos. However, there is a big market for Townhomes out here, we currently own one, and interested ib buying more…to rent…to have a positive cash flow. The one we have now will bring in $500 positive cash flow a month. Hmmm, maybe Townhomes are the way to go…less maintance as you mentioned.

Thanks!

~Liz

import · July 15, 2003, 9:32pm

Re: Single Family Home vs. a Townhome - Posted by Liz

Posted by Liz on July 15, 2003 at 21:32:49:

Thanks Ronald…good point about the HOA’s!!

Good luck to you!

import · July 15, 2003, 11:03am

Re: Single Family Home vs. a Townhome - Posted by Liz

Posted by Liz on July 15, 2003 at 11:03:07:

Thanks Ron!! You gave us a lot to think about.