New Construction: To build or to buy, that is the question?

[Joshua McMillion]

Hello, 

I have recently updated my exit strategies for my first property. When I ran the numbers, I am projected to have high ROE by 2022-2023. I am interested in building two townhomes (3B/2BA/2car garage) in my targeted area of investment. I like the townhome split because it has utilities completely split. Also, this approach allows me to scale faster. Because I used a VA loan, I would have almost no money upfront in my investment.

I am assuming I can sell my home and purchase this new construction without paying capital gains taxes because it was a VA loan, and I have held the property for two years, in the last five years, as a primary residence. Is this assumption, right?

Primary Questions: 

Can you hold one mortgage on a side-by-side townhome (I'm thinking this is essentially a duplex) if you purchase two? 

Is my assumption right of not paying capital gains tax? 

Any recommendations for pursuing new construction?