When under contract at 300k with the expectation that codes would be the determining factor on what can be done on with the property, as it relates to new construction.

I also see your point about avoiding bargain basement properties, especially insofar as tax shielding is easier with an asset of a reasonable size.Your point about barriers to entry is also interesting, since I suppose those barriers can be geography (natural boundaries of mountains/water), but you're probably referring to that which impedes future construction?

I know that @Austin Wolff will push back and cite that construction is, in fact, correlated with long-term prices and rent growth, because it reflects underlying demand dynamics, but I'd bet against those in the case of Austin, TX over the next 5 years.

Purchase price: $120,000 Cash invested: $370,000Completed a co-living new construction project in St.

the way to go about it is turn it over to your insurance and get the police report.. sometimes insurance will then subjugate the claim and go after the tenant criminally I had that happen on one of my rentals where the tenant did 40k in malicious damage on a new construction home I purchased in MS. 

Hey @Chi Lo - I actually have a video on my YouTube page about this (lookup ClosedByMo on YouTube).Regarding walls being damp and waterproofed, it means there needs to be waterproofing on the basement retainer walls (this is something you can do post-construction and the contractors would need to dig around the house exposing the basement/foundation to apply the waterproofing). 

By paying off the land loan through the new construction, it removes that lien and allows the construction loan to move into 1st position.   

To be honest, I´m in the Maintenance & Construction for corporate businesses for some US companies in Mexico and we do some Real Estate down here also, but it´s way much different than the US, so I have much to learn from a lot of people around here and as @Julio Gonzalez, I think this is pretty much the right pad and place to start and to break my fears to start all over again from scratchAlso, I´ld like to hear more from @Justin Brickman why he voted for his city, pros and cons, it will help to read from a local...As I said before, thank you all guys for taking the time to write in this post and share some experienceDo you plan to owner occupy. $40k will not get you a non owner occupied San Diego property unless you find some unlikely alternate financing.

Your best bet is to keep liquid cash and avoid PMI.

The vast majority of new construction, especially in Denver metro and the surrounding communities, has been multifamily and townhomes.