Building rentals vs buying

[Michael Abernathy]

I'm still in search of my first BRRRR property. During my searches I have ran across a few lots that looked very attractive (REO or Foreclosures). In one of the BP Podcasts I remember the guest talked about how he preferred to build rentals because he didn't have to worry about anything breaking for years to come (A/C, Appliances, etc...). I love the idea but I would assume you can't just grab a local builder because they are going to charge premium on the per SF costs.

I'm also not sure how the financing would work.  If I paid cash for the lot would I be able to do a construction to perm on a renal home?

As always any guidance from the gurus is greatly appreciated.

Thanks,

Mike