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Updated over 9 years ago on . Most recent reply
New Construction SFH Rental - New Member from Central PA Area
Hi there BP members!
I am a new member who is seriously considering building some single family home rental properties. I have a trusted client who has built several hundred throughout the years as a GC (all building subcontracted out) and is willing to help me out with his connections and logistics. All of the homes are identical in layout/design and are pretty basic, but are solidly built with quality materials and appraise for $30k - $40k above the lot & construction expenses on average upon completion. I am looking at using a HELOC to purchase a lot and get a loan to cover the building expense ($90k). Once the home is done (3 months) and tenants are in, getting a traditional mortgage to free up the HELOC funds to start again.
I am pretty conservative by nature, but studying the numbers on rental income vs. expenses and having instant equity available seems like a foolish opportunity to ignore. I am hoping to get my "feet wet" and possibly build 1 or 2 a year for a few years and build up a nice source of revenue.
Any thoughts, concerns? I would love any feedback or welcome any questions. Finally, nice meet to you all and look forward to participating in the community!
Dan