New Build for Rental?

[Jonathan Yeh]

I'd like to see what your opinion is on this idea. If I am not in a hurry to get my first rental started, is buying a new build for rental a good idea?

Upsides:

1. It is a bit below market price, not by a lot, but at least 10-20k in my neighbourhood.

2. It will be brand new, which means the CapEx would be low relatively.

3. You design it the way you want your rental properties to be!

Downsides:

1. It takes 6-8 months to be built, which means almost a year without making any return.

2. There are relatively less data for you to evaluate the rental property.

Let's hear what you think!

[Terrell Garren]

After buy/repair/hold 19 SFHs, I'm building a couple new 3BR/2BA 1100SF SFHs on a split lot for around $140K each.  About the same as I can buy and repair currently.  I'll GC and PM to keep the cost low. It's an OK deal, not a brilliant deal. But I'd much rather get up in the morning a walk a building site than a golf course.