For investment purpose, is townhouse or detached home better than condo?

May 21, 2018

Investors select specific type of properties based on their budget, anticipated responsibilities and projected return. Let’s look at the pros and cons of each property type.

For a starter who has limited time and energy to manage the property but still wants to do it herself to gain some landlording experience, condo is a good one to start, especially for someone with a smaller budget. The responsibility is primarily limited to the condo interior. Roof, siding and landcaping are taken care of by the condo association. The major downside is the high monthly condo fee which covers the master insurance, reserved funds for building repair and maintenance as well as utilities for the common areas,

Townhouse and detached home are more expensive and require much attention inside and outside of the home. Common issues to address include roof leak, exterior wood rots and landscape maintenance. As a result the maintenance costs can be high despite the more affordable monthly HOA fee compared to condos.

Just like any investment portfolio, it is good to diversify, That applies to property type and geographic coverage in your portfolio.

Kirin Realty specializes in investment properties. We offer customized solution to meet your needs. Contact us today for a free consultation or sign up to get on our email distribution list for future educational workshops.

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