Has anyone built their way into single family Rentals? I've built a couple of my own homes and I wonder about doing this for rental properties.
1) Instant Equity
2) New property with low maintenance
1) Huge time commitment. (I'm retired and I just enjoy construction projects)
Please share your experience and additional Pro's and Con's.
Greetings Greg, looks like you never got an answer. I'm curious as well, did you have any luck with this? Have you tried it?
Hi Matt; thanks for your response.
I am keeping my eyes open for an open-builder lot. Ideally I will find an infill lot that has most or all of the specials paid off. There are no open-builder lots available in my town (Clearwater), but there are some in nearby Wichita and other small towns around here. If I'm building a non-owner occupied house, I will need to get a contractors license to build here in our county. I was licensed many years ago. I have purchased the 2015 IRC (International Residential Code) book and a study guide. I'm working through that. I also know a former Inspector who does private tutoring to help pass the exam. I took one of his classes years ago when I took the contractor's exam and I was well prepared.
I did run across a BiggerPockets video(BP Podcast 168) featuring Cameron Skinner. He builds spec homes, but keeps many of them as rentals. He pointed out many other advantages to new construction rentals in that video, so this isn't a completely crazy idea!
Are you considering new construction rentals?
My rentals are new construction, but through a local builder. It makes RE investing very straightforward for me by eliminating much of the traditional work of finding deals and managing rehabs.
Message me if you want to chat.
Tom Smart makes a good point. It certainly removes the unknown. I'm local if you wan to discuss over coffee.
@Tom Smart hey Tom! A lot of new construction rentals being thrown my way. Your post was 2019, thought I’d check in and see how your strategy is unfolding thanks