You can use the following link to help run your numbers, click on the Real Estate Investment Analysis Spreadsheet link:
Sunil Sethi Real Estate
Every investor is different, every one has different risk profiles, different reasons for investing, expectations and so on. An accountant can run models for you so you can see the potential cap rate, immediate tax relief, long term tax benefits, operating costs and more.
You also need to make sure you have realistic potential rent numbers when looking at investment properties: too many potential investors are â€œoptimisticâ€ when running the numbers and end up with a rude surprise.
As an owner of investor properties, I can vouch for the fact that ongoing maintenance can be very costly for single family detached homes. With condos, even though you pay a monthly HOA fee, you essentially â€œpay as you goâ€ for maintenance so that you are not saddled with an unexpected bill for a roof or other large ticket item. You donâ€™t have to worry about exterior maintenance, landscaping and so on.
Also make sure you closely examine whether or not you want your properties managed for you: this also has to factored into your costs.
All things being equal, as to location, condition and desirability, and provided the condo HOA aren't through the roof, and for purposes solely for rental and not as a personal residence....
Also....assuming that the condo complexes have room for rentals (some complexes have strict rules of % available for rentals)
There are some advantages to condos: if one unit becomes vacant, there is still income from the other unit. Additionally, with condos, there will likely be less maintenance issues on the outside and common areas since the HOA takes care of that. Whereas a tenant for an SFR may not always be counted on to maintain the yard, etc.
However, do note that typically, SFR values appreciate better than condos...so if your intent is to sell in a few years, you may find that the SFR may have better return on your investment.