New construction for rental, good or bad idea?

[Nicolae Iovu]

Hi everyone,

I’m trying to invest in real estate and I’m not sure if the plan is a good idea, and I need your help.

I want to invest in new constructions SFH and put them for rent. I'm a new General Contractor and built 2 houses so far. The scenario will look like this:

Land: $25,000

Build a 1,200-1,300sqft house : $115,000(3bed2bath)

Total :$140,000

Rent in the area I want to build $1,400

PM : 10%

How would I analyze I deal like that considering building 5 SFH's with all cash?

I’m inexperienced about how the yearly appreciation works on real estate so I can’t get to the right numbers when analyzing a deal like that.

If any of you had such situation to deal with please tell me your experience or opinion.

Thank you in advance for your time.

Nicolae