should I buy this new construction home?

[Yanting Wang]

Hi everyone! I am currently looking at buying a new construction home as a long term rental property. sales price $214000. first my lender told me I can do 0 down. and I am really excited about this deal. but later he told me that am not qualified for 0 down because of my income. the other option is that I can do fha with 3.5% down, 6.125% interest rate. cash to close is $14000. my monthly payment is around $1575-$1590.

it can at least rent for $1700 as a long term rental property. I can have cashflow of $110-125.

my question is it still a good deal? should I buy it?

[Drew Sygit]

@Yanting Wang many investors are buying, "build to rent" properties.

They are all being told that in buying a new construction property, they shouldn't have maintenance issues for 5-10 years, which will increase their cashflow/profit.

Well, tenants have a way of breaking things, not taking care of problems and letting them become maintenance issues, and this is on top of the fact that most new construction properties require several warranty repairs by the builder in the first 12 months.

As others have pointed out, you must live in the property for the first 12 months for an FHA mortgage or take your chances with committing mortgage fraud.