Buy new or older beach house for STR? (Jersey Shore)

[Nick Hawthorne]

Hi all. I'm looking into purchasing a STR beach house on the Jersey Shore that I can use occasionally and rent at least enough to cover the mortgage. I've come across several new construction houses, presumably teardowns. What are the pros and cons of buying a newly constructed house vs. an older one in this area? Also, are there any good resources for investing in the Jersey Shore? Thanks!!

[Brooklyn McCarty]

There are pros and cons to each. 

People assume new construction means everything will be perfect. But what that means is that is no one has lived in that house before. You’ll still have kinks you’ll be working out for the first year or so. 

Typically new construction costs more purchase price but your cap ex is basically non existent for the first several years. 

Existing construction can come with a lower purchase price and may require some love, but can also be a better deal sometimes depending on the amount of time and value you are willing to add  

neither is a wrong choice.