New investor building brand new houses for rentals.

[Josh Toulouse]

Hey everyone, I'm a new investor from Reno NV. I just put my first investment under contract and wanted to say hi.

My deal: I have a good friend who is a contractor and breaking into the new home development world. I originally called him about getting bids on rehabs as I went along with starting my real estate investing. After talking to him we were able to work a deal to buy some of the new homes he is building for below market value. I plan on renting out the first few as they should cash flow moderately after using the brrrr strategy.

The greater Reno area has exploded in the last few years, driving home prices sky high. It has become incredibly difficult to find rental properties that will actually cash flow as the rents have not seemed to keep up with home prices. I adopted my new strategy in Hope's of partnering with my contractor friend to possibly start investing in real estate development.

Any thoughts on this strategy, or am I well out of the realm of what a new investor should be focusing on?