Build to Rent ???

[Richard Michael]

I’ve been looking to invest out of state and have looked at several different turnkey programs along with traditional deals, however I stumbled upon an program called Build to Rent. I took a liking to the program due to it location, Houston Texas, specifically Conroe Tx. I am a strong believer in market fundamentals and it hard to argue against Texas right now.

The program offers 3 and 4 bedrooms homes, with the 3 bedroom homes starting at 125k. They claim that they rent out the properties out for $1,300 a month. I’ve talked to Ron Black the guy running the program and he sounded very knowledgeable but also come off as a little salesy. He invited me out to see the homes, but before I consider a trip to Taxes, I wanted a second opinion, sounds too good, too simple, especially the rents, nonetheless he insist they regularly gets the advertised rents.

Supposedly the advantages to buying new.

-Higher rent than pre-owned homes

-Tenants normally stay longer

- Improves tenant satisfaction and reduces turnover

-Builder’s warranty

-Less maintenance and repair expense

Here is a the link

Link

I could not attach the spreadsheet he sent me but here are the expenses.

Taxes 190

Insurance 40

HOA 20

Management 80

Misc 20

Total $350

Just looking for some opinions and thoughts here. I understand returns elsewhere offer higher returns but does this seem sound investment?