[Calc Review] Help me analyze this deal

[Isaac Sullivan]

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Hi All,

I live in a small college town, the college is growing quickly as well as retiring folks coming over from a big city. The current housing is short approximately 21k units for the expected growth. There are a few multifamily units in town, but mostly single family homes rented out to the college students. 

I have access to multiple homes under the deal provided, these are brand new construction, 2-year warranties and within biking range of the college. These are 4 bedroom houses, which can rent for 2000-2200 a month, but based on the calculator, this doesn't mean the 50% rule.

I also run my own business, in which I won't manage these units myself.

1. Being a new investor, should I be looking at new construction for a long-term 20yr+ deal

2. Should I continue to look for a multi-family unit with more cash flow and potential value add?

It has been suggested by my contact to buy the plot contracts for now and then continue to assess the deal.

I would be acquiring a HELOC to supply more of the down payment, so basically once I buy 3-4 of these homes, I would not have much money for future opportunities for a while.

Hope this is enough information to help eval the deal, thanks for all the insights.

Cheers,

Isaac