To build or to rehab?

[Jonathan Reed]

I hope this isn’t a dumb question. Do you think building and then renting a structure, either single or multi door, could be just as much or more of a lucrative venture? It would pan out this way.

Build - either my self or sub contract the work. My father is a GC so I have access to the experience of doing it right.

Rent - rents could command a higher premium because the unit is brand new

Refinance - like usual

Repeat -

The reason why I ask this question is because to me, if I build on a lot then I have complete control over whether I make it a single door or more.

Ultimately I am asking these questions because my wife and I have started making decisions to getting our first rental by the end of the year. This alternative to the traditional brrrr method crossed my mind. I know this just comes off as real estate developing but, it almost seems like a principle of build to rent.

Hope this makes sense.

Love Y’all

Jonathan Reed