Building first rental property. Any advice welcomed

[Patrick Padovano]

I currently own my primary residence and recently decided to buy a piece of raw land where my father’s construction company is, and with his help,  build a single family home on it which will become a long term rental when completed. I originally created an llc to purchase the land, however decided after to buy it in my name and transfer into the llc after the house is built, rented, and refinanced. I may or may not need to take out a small construction loan along the way, depending on how expensive things get. I’m very new to all of this so any advice on things would be greatly appreciated. Thanks everyone! 

[Tim Ryan]

Good luck building your new rental.  Every time I've looked into building to rent the numbers did not make sense. I would sell the new build, but to hold as a rental, just didn't make sense. Buying existing rentals and improving it is another story.

[Nathan Gesner]

Quote from @Patrick Padovano:

Since your father is helping you build, I assume you can build the home cheaper than if you hired an outsider, which means it may cash flow nicely. Here's a guide that describes what good cash flow looks like and how to analyze a property.

https://www.biggerpockets.com/blog/rental-property-cash-flow...

[Robert Ellis]

Quote from @Tim Ryan:

Good luck building your new rental.  Every time I've looked into building to rent the numbers did not make sense. I would sell the new build, but to hold as a rental, just didn't make sense. Buying existing rentals and improving it is another story.

 typically I'd agree but we build a stacked triplex that does very well with build cost around 380k and rent at 5k a month. value is about 600k I think you need to build multiple dwelling units in the same building for the numbers to work

[Tim Ryan]

Quote from @Robert Ellis:

Quote from @Tim Ryan:

Good luck building your new rental.  Every time I've looked into building to rent the numbers did not make sense. I would sell the new build, but to hold as a rental, just didn't make sense. Buying existing rentals and improving it is another story.

 typically I'd agree but we build a stacked triplex that does very well with build cost around 380k and rent at 5k a month. value is about 600k I think you need to build multiple dwelling units in the same building for the numbers to work

 Robert, yeah that's good numbers on your triplex's.  Love it!

[Patrick Padovano]

Quote from @Tim Ryan:

Good luck building your new rental.  Every time I've looked into building to rent the numbers did not make sense. I would sell the new build, but to hold as a rental, just didn't make sense. Buying existing rentals and improving it is another story.

Ya I hear a lot of the same from people! So being able to work with my father and his company is a huge advantage so I think I’ll be able to turn a decent amount of equity by the time we finish

[Patrick Padovano]

Quote from @Nathan Gesner:

Quote from @Patrick Padovano:

Since your father is helping you build, I assume you can build the home cheaper than if you hired an outsider, which means it may cash flow nicely. Here's a guide that describes what good cash flow looks like and how to analyze a property.

https://www.biggerpockets.com/blog/rental-property-cash-flow...

Thanks for the reply I appreciate it!