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Are you currently renting?
While townhomes don’t rent to appreciate as strongly as SFH’s, they can definitely still work out better than renting. Keep in mind that low inventory tends to mean higher prices, which means if inventory suddenly does spike like you are expecting in 5 years, selling your current property may be trickier and/or at a lower price than you were hoping for.
If you’re on a strict 5 year timeline, you may want to model out renting vs owning, especially with the down payment, HOA fees, and property taxes and such. Renting may still be significantly cheaper than owning from a cost perspective, but then it comes down to whether the appreciation outweighs the costs.
I would do it. Its an investment and if the market isn't great when you are ready to sell, you could rent it. This housing shortage is real and will be here for years to come . You won’t have trouble finding someone to want it .
3BR and 3BA townhouse is more than sufficient as a starter home. Check the sales history for that community about resell.