What are your thoughts on New Construction?

[Elin Trinh]

Hi BP Fam - 

I am interested in investing out of state. I am looking for a BRRRR in Houston, San Antonio, Atlanta, or Tampa. But I am finding some new construction in Houston and San Antonio that looking interesting. What are your thoughts on buying a New Construction Duplex and renting for a long distance investor?

Thank you in advance for your help!

[Joe Splitrock]

@Elin Trinh you will get push back from people on BP about new construction. The BRRRR drum beat is loud here and everyone pushes the idea you have to buy distressed and rehab. In my market all the biggest and most successful investors are building new construction. They are not here on BP talking about it.

Here is my theory on why. If you are in the business long enough, new construction is the "next level". At some point you get sick of dealing with C class tenants and managing rehab. New construction gets better tenants and avoids surprises found in used properties. 

Once you reach that level, you don't need to take advice on internet forums about LLC and how to collect rent. In other words, the big players are building new and they are not here talking about it.