My puppy has always been an apartment dog. I live in a sketchy area, so taking her out at night isn't feasible. She is just puppy pad trained. (she actually holds it in on walks, annoyingly enough, until she gets home. I guess she hates "public restrooms" as much as me!)
As for barking, I think your dogs will adjust. Besides town homes are usually bigger right? Chihuahuas are great apartment dogs, mine does fine in a tiny studio as long as I play with her A LOT.
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