Build to Rent

[Damien Davis]

Hello BP Community,

I'm a rookie investor, only have one deal under my belt (Long term rental) and it's been treating me very well. As I take in as much content as possible from listening to the Rookie Real Estate podcast, I feel drawn to building multi-families and renting them out. I have a full time W2 that I'm passionate about, so I feel this process will allow me to time to make sound decisions as opposed to quick fix n flips. I'm interested in knowing your opinions, experiences with this strategy and any advice. Thanks for reading, look forward to hearing feedback!

[Kristi Kandel]

Quote from @Todd Anderson:

@Damien Davis,

Congrats on wanting to continue your REI journey. It is great that you are taking advantage of the BP community.

For myself and the investors that i work with the build to rent models offers may great advantages.  Keep looking down this road I don't believe that you will be disappointed.  I would caution you on one thing being newer and having a W2 that you like and want to keep.  Development is a full time job.  It is also very risky and has a lot of potholes that you can find in your first try.  I would suggest that you find a partner or mento who has done it before.

Many of the investors that I work with in your position find that buying New Construction investment property from a builder is a better option. Let the builder take the risk of the development and the cost of construction financing. Then the investor can come in at the end with final financing and get a new 1-4 unit investment property that is ready to rent. This way you can cut the time substantially to get to ROI.

One other advantage is that many of the builders that I have worked with are able to incentivise the sale with interest rate buydowns that make the deal work.

Best of luck moving forward.

 @Todd Anderson totally agree on finding a mentor in the market to learn from. @Damien Davis you'll make less on the initial projects but the experience you'll gain will be completely worth it. Networking with the professionals in your market will start to open doors and opportunities to collaborate will arise!