New house new construction please help

[James Sampson]

Hello my wife and I are buying our first home and it's a new construction in a very new up and coming area but after researching and everything I'm nervous I might be getting the short end. At the moment the rough estimate of what I'd be paying is somewhere around 315-325k and with a $400~ HOA fee a month. The 2% rule for renting it out when I have to move due to my career, seems obnoxious and unlikely. Even 1% seems steep for the area so I am in fear I won't be able to keep it up. Are negotiations even an option with new construction?

Please help I am brand new to this lifestyle of real estate investing and I am trying to find my niche.

Any help or analysis or anything would help considerably

[Anson Young]

James, welcome!

2% is tough to find in most large markets, unfortunately.  Especially on new build (unless you are the developer and can really control the costs and get a great deal on land).  Typically builders will only wiggle so much, in a good economy with a building boom, its hard to negotiate on anything with them.  When there is a slowdown or recession, its much easier to get them to budge.  Every one I've met with for clients in the last few years arent negotiating at all, their lots are flying off the shelves and they are doing price increases every 30-60 days.