Investing in new buildings?

[Maria Menshchikova]

Hello all, 

I am just starting my journey with real estate. For the past couple of months I have been trying to learn as much as I can, but of course I still have my doubts. I have been looking around, and found very interesting proposals for the new buildings, which should be finished only in 1-2 years. Fairly speaking, the price, location, other metrics look amazing, even the potential cash flow per month. I understand that because the cash flow will be delayed for 1-2 years, I am technically paying such good price for the apartment, therefore I would like to collect more opinions on this type of investment. What do you think overall of such investment? Maybe there are some things that i should pay more attention to, anything I should consider/calculate upfront which for other investments is not necessary? Is it a good idea in general of just investing and hoping that cashflow will come one day? 

Thank you so much! Looking forward to your answer!! 

Maria 

[Evan Polaski]

@Maria Menshchikova, this is a bit confusing to me: you put in say 30% now.  Then over next 2 years you pay down the remaining 70% of the purchase price?  

Let's assign a value of $400,000 to this house.  You pay builder $120,000 today.  And over two years you pay the remaining $280,000 off, meaning over $10k/month you send to builder?  

I only ask, because most people are not sitting on $400k cash (obviously this is just my example) to effectively buy a new house without a mortgage.  

But back to Nicholas' comment: there is simply not enough information to even begin to state if this is a deal he or I would do.  What market?  What neighborhood?  What is the purchase price of property?  How many beds/baths?  What amenities are going to be included in purchase price?  What are property taxes like there?  What is the tenant quality?....