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Updated about 9 years ago on . Most recent reply
![Skip Gilliam's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/420691/1621450663-avatar-skipg.jpg?twic=v1/output=image/cover=128x128&v=2)
Buying a new build in a great downtown location?
We have a new small townhouse community under construction currently in our downtown area in the historic district. A small group of 36 homes one block from the the main promenade area where all festivals, good resturants, farmers market, coffee shops are located. It really is a great location with new construction popping up everywhere this past year.
Trying to decide if it's a good investment to buy now before they are completed?? Units starting at $200,000 for 1700 3bed 2bath. Rent would go for $1900-$2000 according to property management company. I really see the value increasing on these in the next few years with everything currently under construction and everything that is planned in surrounding areas over the next couple of years.
Is it ever a good idea to buy new to rent out?
Thanks
Most Popular Reply
![Joe Cantanzriti's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/209538/1621433385-avatar-jcantanz.jpg?twic=v1/output=image/cover=128x128&v=2)
If the numbers work for you at that $200,000 purchase price, then it most definitely could be a good idea to buy new and rent out, I just wouldn't look at the possibly of appreciation up front and if makes sense factoring in zero appreciation then it could be a good investment. At those rental rates at least on the surface it seems like it has great potential for a long term hold though be sure to factor in all of your costs, especially the ever incresing HOA fee.
Also do your best to verify that rent rate, some property managers sometimes can be a little "over excited" about the market....