Build to rent

[Jason McKinley]

Hey BP, 

Who has experience in building SFHs for rentals? If you do what market factors do you look at as to decide if its a good investment in your market? Is the profit margin that much tighter? What other considerations might you have?

Thanks,

Jason 

[Tarek Soliman]

most likely  depends on your market. I am about to close on a land to build for rent. I found out that might be more sustainable and economical to build than buying very old house. however 1% is very good measure that would put on the right track, but I am trying to do better than 1%. also keep in mind what is the sweet spot for your market, for instance mine is 3b/2b. your real challenge is to find a builder to build cheap quality house for rent not for flip. 

for sure your cash flow will be very low, but you would save in taxes and very low maintenance on the long term. must plane to hold for at least  5 years after that you can sale or keep them as you investment opportunity telling you. 

let me know how to goes with you, I am in the same journey.