But those same banks stuck with me and allowed me to pivot and build up my new construction side using bank debt intead of HML.. etc etc.

Once that’s confirmed, they’ll help you submit the required permits to the Department of Buildings (DOB) and get approval from the Department of Transportation (DOT), since it affects the sidewalk and street.After permits are approved, you’ll need a licensed contractor to do the construction.

A borrower is more inclined to face adversity with a construction project than most other types of real estate investing.

. - Rents are also a function of supply - 2024 saw the most new construction of multifamily units in American history (nearly 575,000 estimated 2024 deliveries of new multifamily inventory), and 2025, while not a record setting year, will see deliveries top 500,000 again - a huge supply increase. 

Quote from @Devin James: Quote from @Dominic Mazzarella: Quote from @Devin James: Everything went wrong with this investment:   - Took 4 months longer than expected   - Cost $10K more to build than we anticipated   - Sold for $20K less than we anticipatedWe still profited with a 30% return on equityThis is why I love Real Estate InvestingWhen you do your diligence and stay conservative with your numbers, it takes something really bad to lose money.Here was the original post:My siblings and I are building a home in North Port, FL.Here are the numbers: - Finished Home Value: $412Kish - Land Cost: $19,750.39 - Construction & Permitting Costs: $304,897Additional costs: - Environmental Site Assessment - General Liability Insurance - Builders Risk Insurance - Construction FinancingWe will be listing the home this weekPhotos coming soon!! 

Maybe for a newer construction is not but older homes (<1970), it is real.

When I had 1 tenant nearly get evicted, phone calls with the tenant not being answered, 5 months of no rent, attorneys etc. that got old.I sold that property for a nice profit and now 1031 into two new construction rentals.

From my experience, when I dive into the costs associated with building an ADU—including construction expenses and financing options like hard money loans—it often doesn’t make financial sense.

I think that '25 will be a transition year ("end the dive in '25") for the reasons you stated--construction will fall off in Q2-3 but demand will remain...that sparks rent growth.Interest rates:  Yes, flat to up. 

I do see many investors incorporating a similar strategy with new construction builds, heavy rehabs, or in instances where the property was bought far below market value (usually a wholesale type transaction).