What Property Type Quiz

The best type depends on your budget, household size, lifestyle, and future plans. Condos suit single professionals and couples in urban cores, townhouses offer entry-level ownership with low maintenance, single-family detached homes (SFR) provide maximum space and privacy, and small multifamily (2-4 units) lets owner-occupants house-hack with FHA or VA loans.

Condos in walkable urban cores with strong rental demand can be solid investments, typically yielding 4-6% cash-on-cash. However, condos carry HOA dues ($200-600/month), special assessment risk, and appreciate 1-2% slower than single-family per Case-Shiller. Check the HOA reserves, delinquency rate, and Fannie Mae warrantability before buying, unwarrantable condos require cash or portfolio loans at higher rates.

New construction offers Energy Star efficiency, modern open layouts, and builder warranties (1/2/10). However, it carries a 10-20% premium over comparable existing homes and may appreciate slower in the first few years. It is worth it if you value low maintenance and utility savings over character and larger lots. Builders frequently offer rate buydowns and closing cost credits in 2025.

Townhouses cost 15-25% less than detached single-family equivalents and are found in convenient urban and transit-oriented locations. Downsides include HOA dues, shared walls (noise), smaller yards, and often less privacy. They are popular with first-time buyers and empty nesters and offer solid long-term appreciation in growth metros.

Single-family detached provides more privacy, no shared walls, larger lots, and typically the strongest appreciation. Townhouses cost 15-25% less and offer most of the same benefits with lower maintenance. Single-family is the top choice for families per NAR buyer data; townhouses are the best balance for budget-conscious buyers in tight markets.

Single-family detached homes consistently achieve the highest resale values and appreciate fastest per Case-Shiller, particularly 3-bed/2-bath homes in good school districts (the most liquid US segment). Well-located condos near transit hold value in major metros but depend heavily on HOA health and walk score. Small multifamily can beat all types on total return when held for cash flow and appreciation together.

You are ready when you have 3-20% down payment saved, 2-5% closing costs, 3-6 months cash reserves, stable W-2 or 2+ years of 1099 income, FICO above 620, a mortgage pre-approval letter, and a real estate agent lined up.

It covers cap rate tracking, tenant screening (credit, income, rental history), preventive maintenance, landlord insurance and umbrella coverage, mortgage refinance review, vacancy minimization, Fair Housing and state landlord-tenant law compliance, annual rent review, property condition, and property management evaluation.

Conventional (Fannie Mae/Freddie Mac conforming, 3-20% down), FHA (3.5% down with 580+ FICO, government-insured), VA (0% down for eligible veterans, no PMI), USDA (0% down in rural areas), jumbo (above $806,500 conforming limit, 10-20% down), and ARMs (5/1, 7/1, 10/1 fixed-then-adjustable).

A good realtor achieves a higher sale price in less time than market average while keeping sellers informed and reducing contract fall-throughs.

Property investment readiness measures whether you have the capital, knowledge, finance, and legal structure to invest in US investment property successfully.