Rehab or Build to Rent?

[John Ellerman]

Hey Guys, This is my first post on BP, so I'm going to give a really newbie question. I recently moved to Miami for work in construction and am looking to start investing in multi family properties. After running the numbers, I've realized that the market here in Miami is very competitive and the asking prices of MFs in the area would barely cash flow, if at all. Because of this, I've looked a little north (WPB, Delray, Lake Worth) and a little south (Kendal, Homestead, Florida City) for properties and found some cheap MFs in need of a desperate rehab. My question is: would it be a better idea to buy the land and build a brand new multi family property or buy an old one in need of a full gut/rehab for cheap and fix it up?