We had a primary and secondary residence and a long term rental when we purchased a vacation property in Punta Cana in 2016 to also use as a vacation rental when we weren't there.  

Hey guys, I needed some advice on new construction here in NJ.Me & my wife want to purchase a second home as our primary home but prices on houses are super over priced and just not worth it especially with inventory being so low & the market just all twisted.My thought was to maybe pick the town I want to live in and potentially see if I can get vacant land to build on obviously.I wonder if maybe it will cheaper to do this strategy instead of getting a loan for 600-700K home that still needs work and I’m not happy about it..thoughts?

Purchase price: $645,000 Cash invested: $32,250 New to the rental program, this charming 1 bedroom villa is an ideal beach getaway.

Purchased my own rentals and grew my portfolio to over 7 figures.

You could create a cash flow tree showing how you can snowball the income $ to purchase more and grow. 

My out of state clients have completed successful flips here and the purchase price points are still very cheap.

@Katie Miller is it better to purchase "Real Estate Rookie" instead of "Rental Property Investing"  Or both to learn from different view points? 

And, even if you could find an appraiser to do an evaluation, it's not clear how that would help you.As you state, the motel has been shut down for nearly three years, so there's no current financial data.But even if you had recent numbers, you're planning to operate it as a sober living facility, which I suspect is a very different business model.You need to find a comparable facility in or near your local market and develop your own customized financial analysis model based upon this particular property.Then, given your business objectives (cash flow and cash-on-cash return, I assume), you'll need to back into what purchase terms you'll need to achieve those objectives.Only then will you be able to determine whether these seller financing terms will work.As far as documentation to get started, a letter of intent (LOI) is commonly used but you might move straight to a purchase and sale agreement, particularly if no agent is involved.Whichever path you choose, just be certain to give yourself plenty of time to thoroughly perform your due-diligence.

@Amy KimRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Any other advice.Thanks in advance,Josh@Joshua Metzger congrats on your first STR purchase and welcome to the BP forums.1.