Would you build in a non-cashflow market, or is cash flow still king?

[Robert Ellis]

Everyone chases cash flow, but new builds create instant equity, appreciate faster, and need zero maintenance. Columbus has a housing shortage and growing demand—plus, fewer builders are competing.

Would you rather fight for overpriced rentals or build exactly what the market needs? What are your thoughts on this? 

[Matthew Becker]

Quote from @Austin Wolff:

Quote from @Matthew Becker:

I build about 10x the rentals that I buy, and if I buy a rental, it is only because I can build on it.  You do get instant equity, and you don't have to fix anything for 10 years.  I build a lot of duplexes with 12 bedrooms and a common space.  Each bedroom is the size of a studio with a kitchette.  Not sure why I don't see anyone doing this.  

I am just finishing a 28 studios built in 2 deplexes.  Here is an example and I stack these 4 or 5 stories tall depending on zoning.  Full basement plus 4 with a flat roof keeps me under 40 foot 

 Thanks for sharing. Does that mean each unit per duplex has 6 bedrooms, 6 baths, and 6 kitchens?

 Buy Cose it’s only considered a bedroom. It has a kitchenett. In order to have a full kitchen you need a oven we put in convection, burners and auto fryers

So technically, they don’t have kitchens, but they do.  They’re very simple to build very cheap. You don’t need sprinkler systems. You don’t need separate metering. I can build them for about 100 bucks a foot.  So $40,000 unit and get $1000 a month in rent