Are New Construction Good For First Investment?

[RJ Gustilo]

Hi, I am a newbie that is just getting started. I am a technology professional and my only real estate experience is the personal residence my wife and I purchased last year.

I am wondering if new constructions in Jacksonville are profitable for cashflow? My wife and I have a goal to invest in a small multifamily property this year.

Thanks,

RJ

[Nathan A.]

To answer that question, try the BP calculator. Put in the purchase price of an example property and how you're going to finance it (mortgage rates are easy to Google for). Estimate the rent on rentometer.com or BP's rent estimator and plug that in too. As a homeowner, you probably have a good idea about what property taxes and insurance tend to cost in your area. The BP calculator can guide you on reasonable defaults to use for vacancy, capital expenditures, repairs and management fees until you know more.

If this sounds overwhelming, here's a guide on how to analyze a property, and the BP webinars always cover running these calculations in pretty considerable detail.