New Construction SFH for investing

[Sachin Amin]

Hello BP community,

Most of the builders do not offer investors opportunity to buy the lots and they claim they are only for primary residence (i;e they will sell only if you are going to live in it (example Ryan homes, Pulte homes etc..) are there any builders out there who can sell to investors for "buy to rent" in Columbus OH? was looking to add brand new SFH to my portfolio. But seems tricky as none of the builders are willing to sell to investors in and around Columbus region ?

any ideas if there are any builders who would sell it to investors like me who wish to add new construction SFH's to their portfolios ?

Thx

Sachin

[Jay Hinrichs]

U have to find developments that are purpose built for investors.. And the values like all rentals will just track the rental rates and what an investor is willing to pay for a return.

Owner occ developments there is no value associated to the income approach so these props generally speaking will appreciate a lot more as the neighborhoods are much more desirable. 

builders the last thing they want to do is sell to investors if they are creating owner occupied communities.. rentals degrade the neighborhood and they will be sabotaging their own values to allow a bunch of investors to buy and rent out in their communities.

So when you buy new builds keep in mind if its a build to rent community they will NOT appreciate like owner occupied neighborhoods.. might be best to find something already 3 to 5 years old where the stigma of renters dies down.. that would be best to protect your investment.