New Construction Rentals in Tampa & Brandon

[Adam Anderson]

Hi,

Is it generally a bad idea to buy and hold new construction as a rental? I'm wondering since there's really no way to add value to the property. The benefit would be no cap ex or maintenance for a few years and it might be easier to rent (as long as everyone else in the neighborhood plans to buy and rent too). I'm considering a townhouse in Broadway Centre in Brandon. The area is just outside of Tampa and pretty well built up, I cant see where else a large home builder could build near buy. The cap rate would be lower, around 7% but I'm wonder if there is a better potential for appreciation. The HOA fees are only $150, and its a nice community with a pool. I'm an out of state investor and would retain a manager.

Is this kind of investment a low maintenance opportunity for appreciation while collecting some rent or a value trap?

Adam