Updated about 10 years ago on . Most recent reply
New built home as rental
Just starting out and I have this idea that purchasing a town home from a builder would make for a great rental.
Pros:
- reputable builder
- growing area in west Ottawa
- trendy, new outlets, lots of new development
- attract high level tenant
- good for buy&hold long term
Cons:
- wait for closing
- might be tough to rent if cannot show
- lose most profit as it goes to the builder
- would need a larger than usual down payment (30-50% +) to cash flow
*also I am completely new at this and only see it happening with a JV partner who provides the capital.
Can this strategy work?