New construction homes for rental property investment

[Clifford Datan]

Hello,

I’m fairly new but really hungry to learn and grow my portfolio of owning some rental properties. I’m in SoCal and noticed that there are several new construction homes that are currently being developed by different builders. I’m curious, are new construction homes a good option for an investment property? I appreciate the time.

[Nathan Gesner]

I agree with Joe. New homes are typically more expensive than an older home of the same quality. On top of that, it's hard to find anything in SoCal that will cash flow. You're really betting on appreciation, which is a real gamble right now with ridiculously high prices and a good chance inflation is going to worsen.