Thoughts on buying new construction tax abatement properties?

[Andrew Giunta]

I see so many of these properties and they look okay at first glance. My problem with them mostly is im assuming the value of the property itself depreciates quite quickly especially on year 10 when you have to start paying taxes. Also im sure the cap rates are completely fudged to make the deal look better. Also not to mention many of them are just builders looking to capitalize on the tax incentives so it might be hard to tell the quality of the construction etc as a layman. The nice thing is if they live up to what they claim, I can hold them for low maintenance. I play on holding them for 40+ years as well and they will probably last that long compared to some of the already older Philly properties. Would love to hear thoughts.