New Construction Development - Build for Sale or Rent?

[Joel Erb]

I live in Petersburg, Virginia and recently purchased two sides of a City block (roughly 5 acres) to develop (currently open land). It’s located 1/2 a mile from downtown and already has active renovations taking place to early 19th century homes.

My initial plan was to build 6 units on one side that are roughly 1,400sqft and then 8-10 on the other in form of a “pocket community” - single story small homes.

Given the market, I’m debating whether building homes for sale is a solid idea vs. building for rent (even completely reimagining what would go on those lots) or a combination of rentals vs. homes for sale.

Any thoughts on how best to proceed?

[Pratap Koppula]

Before making any investment decisions, it is important to conduct a thorough feasibility study to ensure the project is viable and sustainable. If the market is slowing down, it may be wise to consider build to rent options as an alternative. However, if the market is hot and you have some cash available, selling may be a viable option. Either way, careful consideration of the market conditions and a detailed feasibility study are essential to making the right decision.