Which is better: Buying vs Building

[Joshua Awodele]

Hey guys,

My partner and I were having a conversation about which approach is better: either buying a rental property or building a complex with the same amount of capital e.g $500,000.

To me, the analysis makes more sense to build a property in an ideal city and rent higher than to buy an existing rental property: reduced repair costs, city tax incentives, competition among contractors/builders to build the most units for your money.

Thoughts?