Buy and hold new construction

[Iris Sanchez]

Good afternoon, just wondering if there's anyone that has started their rental business by buying new construction?

[Bob Okenwa]

@Iris Sanchez

It's harder to get cash flow with new construction as you will be paying full retail and sometimes beyond that to get into a property as these kinds of homes tend to be much bigger and way more expensive than pre-existing homes. Especially in CA. Not to mention, most new construction neighborhoods are heavily owner-occupied and out of the way from city centers that most renters like to be in. Lastly, when it comes down to pricing the rental, you're going to see that the amount you'd set rent at is pretty close if not greater than a mortgage would be for the area and most people would rather just buy if the monthly payments are close enough to renting.