A-class new construction SFH rentals?

[William S.]

Anyone purchasing high quality rentals with very high rents? I've noticed new construction homes for $230k that'll rent for $2k or so and am intrigued. I don't want 100 doors, but quality over quantity. With such high rents maintenance is simply no longer a factor. Also the homes are in highly desireable areas that will appreciate.

[J Scott]

Maintenance costs may not be an issue for a few years, but over the long-term your maintenance costs will average out to the same as any other rental property.  As for appreciation, most areas of the United States have historically appreciated at about the same rate as inflation. Unless you're working in an area that has historically outpaced inflation, don't expect the next 30 Years to be any different than the past hundred.

$2,000 per month rent on a unit that cost $230,000 will likely result in about 5% cash on cash return over a long period of time.  You may do better short-term due to lower maintenance and capex costs, but this will likely be outweighed by the fact that you'll see some depreciation from new construction values after the unit has been in service for a year or two.