In buying a townhouse, there are two different housing types for you to consider. Each has its own benefits depending on your financial situation and your personal homeownership goals.
Single-Family Home - A single-family home is a building intended to house one family. While you have the freedom to make all decisions with this type of property, homes are generally more expensive and there can be additional costs to renovate.
It is worth investing in this type of property if you know that you value complete freedom and privacy; but you also must be able to take full responsibility for any repairs or renovations that need to be done.
Multiple-Family - Home Purchasing a small home with rental units can be a great way to make homeownership more affordable. Although the initial purchase price of a two or three family may be slightly more than the cost of a single family home, you may actually be able to borrow more money and the house may be more affordable because you will collect rent from your tenants.
The rent you collect will increase your income and will provide you with more money to pay your mortgage. Therefore, the bank or mortgage lender may be more willing to take a larger mortgage or may accept a lower household income because they know that you will also be collecting rent.
Resources: https://www.thetownhousespecialist.com/single-family-vs-multi-unit
City wide rent controls may apply if there are six or more units in the building.
