Taking Advantage of Builder Closeouts and Booming Business

[Kristyn Grimes]

Just put down earnest money on a new construction 3/2 SFH. Received amazing builder incentives to take the last lot for the smallest floorplan in the neighborhood including paid closing costs. Not exactly the BRRRR I was looking for but the numbers really work on this one (doubles the 1% rule). Small neighborhood one exit down from two new Amazon DC's, one new FedEx DC, three newer hospitals. The high end apartment complexes nearby aren't keeping up with demand. I've lived in this area for 20+years and the growth has been utterly astounding in the last ten.

With the capital I currently have, I'm considering buying a second but we'll see since nothing else in the area right now is even close to the builder signs that still read "Prices from the $170's." My strategy is to use base level finishes whole leasing it and replace with upgraded finishes once I'm ready to sell it in 7-10 years. We'll see.