New construction multifamily?

[Robby Sanchez]

Hey everyone what are your opinions on purchasing new construction multifamily units? I'm sure cash flow will be close to 0 but I also think in the long term the equity and rent growth will be great. What are your thoughts?

[Ryan Kelly]

@Robby Sanchez there are some new construction duplexes in Leander, but they also come at a steep price. When you buy new construction, the upside is low maintenance, but the downside is you have no ability to affect it’s value in the coming years, so you are at the mercy of the market for all equity gains. Any of these properties will be difficult to get positive cash flow on in the Austin metro without a significant down payment.