New construction Vs Older Properties for the beginner

[Gilda L. Sauceda]

Hi Everyone! 

I'm a beginner and would like to know if you think a new 4PLEX construction is better for the beginner ....rather than an older property? 

Pro's and Con's?

New construction price range is higher but has a better ROI in a growing location as I been told.

I'm wondering if a new construction owner occupied would be a better route for me as a newbie investor. 

Thoughts? Thank you!

[Andrew Garcia]

Hi @Gilda L. Sauceda, the higher price is going to have the biggest effect on the monthly payment since you can utilize 3.5% down FHA financing.

Since it is a 4-plex, the qualifying income will take the rents of the other units into account so your qualifying monthly payment may be less than a single-family, even if it is double or triple the price.

Since it has a better ROI and a better location, I would advise going with the new construction 4-plex.

I hope this helps! Let me know if I can be of any assistance.