What is the Pros and Cons to buy a new constructed house?

[Ken Kwok]

I am looking to invest in a Single Family House or Multifamiy in Seattle area, and see some new constructed houses which looks amazing from all the pics. I am wondering what the tenant usually think about new house? Are they willing to pay for the premium? How should I choose between an 20-30 years old house and a brand new constructed house?

So what is the pros and cons from an investor perspective? 

Pros: easier to find tenant? less hassle to maintain everything? 

Cons: less NOI? too new houses in new area which is inconvenience?

P.S. In Asia or Chinese culture, people do care a lot to live in a new house rather than a SECOND HAND house; in other words, the 2nd hand will depreciate a lot like a car once people lived in for awhile.

[Jay Hinrichs]

Originally posted by @Ken Kwok:

I am looking to invest in a Single Family House or Multifamiy in Seattle area, and see some new constructed houses which looks amazing from all the pics. I am wondering what the tenant usually think about new house? Are they willing to pay for the premium? How should I choose between an 20-30 years old house and a brand new constructed house?

So what is the pros and cons from an investor perspective? 

Pros: easier to find tenant? less hassle to maintain everything? 

Cons: less NOI? too new houses in new area which is inconvenience?

P.S. In Asia or Chinese culture, people do care a lot to live in a new house rather than a SECOND HAND house; in other words, the 2nd hand will depreciate a lot like a car once people lived in for awhile.

I build new construction in Portland  and for SFRs you would need about 50% down to cash flow.. which is OK. Seattle I bet the same

you can buy brand new construction 4 plexs in Portland for 1.2 to 2 million that will be about 4 to 5 Caps with 25% down and they are built as condo's as well so you can rent them all or sell them individually.. I fund a builder who does this..