Buy to let which one?

[Letslet]

We are looking at buying a buy to let . I have found two properties one is a townhouse 3 bedrooms , walking distance to town , views from window nice area but worried about wether I would be reducing my potential market with a townhouse . The living area, kitchen is on the 1st floor with the garden and 3rd bedroom/2nd reception with access to garden on ground and 2 doubles and bathroom on 2nd Floor I love this house and would be a future potential house for us to live in depending on how many children leave home in the future (we have older children) . Also the area is subject to further rejuvenation in the next 5 years so may see prices rise (possibly)
The 2nd is a more obvious buy to let 2. Bed terrace, off road parking nice area walking distance to town 2 small reception rooms but too small for us to ever live in but nice decor and would suit newly married ,first child couple
The question is do I go for obvious 2nd choice or do I go for the first which has the potential to be.a future home for us as well and may see prices go up because of rejuvenation of area but is less attractive as a rental

I am probably in the same age group as you. I would go with the obvious BTL as long as the figures stack up.
When you mentioned three stories it put me off a bit, but when you talked of it as a potential future home, no. You will have a lot of decisions to make as a landlord and seeing it as your future home could really muddy the waters.
Ie, when you would quite happily and reasonably put down laminate floor in a BTL would you think "why not go with hardwood" if you might live in it in the future. Then be annoyed when the tenants trash the hardwood/ lovely bathroom suite/ new kitchen.
When the time comes to downsize, you may not want to move into it, but feel you have to.
Your needs may change or the area may not improve as much as you hope.

We are starting on the BtL road and at first I was finding it really difficult to view it wholly as an investment. I kept imagining myself living there, or buying into the local cafe culture lifestyle etc. after viewing around 12 properties of varying sizes, prices, areas etc I am finally seeing what sort if property it is that we need to purchase to achieve our investment goals.

Ultimately it comes down to several factors

1. How much will the investment cost you
2. How much will the rent be
3. Potential capital gain

Then also:

1. How easy it will be to rent
2. What type of tenant

If the two properties are roughly the same price and will achieve a similar rent then I would go for the townhouse. It has more potential for you as well as capital gain potential.

If the more obvious rental property is cheaper, and likely to be let more easily this could be better. It could provide an income for you in your retirement and those types of houses are usually quite in demand with investors and first time buyers so would probably sell quite easily if you needed to release your equity quickly.

The townhouse may appeal to someone who wants a longer term let, such as a family. But this type of tenant may be harder to find so you may have void periods.

If they are a similar price and yield then I would go with the more obvious one. I think with BtL you have to think mass market. Like the previous poster said, if you have an emotional attachment to it or its contents it can be more difficult.

Good luck!

Thanks for the advice I think you are right I need to think with my head not my heart Not as easy as it sounds though!