Questions for new builds

[Brock Jenkins]

Hello BP community!

I’m am a new investor and looking in the Idaho Falls/Rexburg area. There is a new community of condos going up that I want to purchase for a short term rental. I really like the growth of the area and the near by attractions.

What type of questions should I be asking builders before I purchase a new construction condo?

What information should I have before talking to the builder?

I know they will probably only tell me the sunny side to sell their properties but I’m sure there’s other info I can get from them.

I am doing this from California so any help would be much appreciated!

[Grant Schroeder]

@Brock Jenkins As @Don Spafford pointed out, it is best to get into the condo early as an investment property. The HOA will have limits on STRs and the % of traditional rentals allowed. Typically HOAs do not allow STRs. Fannie Mae has no limits on how many investment loans in a condo complex, they just have the below guidelines about a Single Entity owning a certain numbers/% of condos in a complex:

Single-Entity Ownership

A project meets the definition of single-entity ownership when a single entity (the same individual, investor group, partnership, or corporation) owns more than the following total number of units in the project:

• projects with 5 to 20 units – 2 units
• projects with 21 or more units – 20%