New Construction for Rental Homes
I have 8 lots in a subdivision with houses ranging from $100k-$210k. All lots are paid for with cash and utilities are available. I am using 2 lots to build my personal residence but the other 6 I want to build additional homes to rent out. Being that I can build a good rental for about $140k I feel like this wouldn't be a bad idea. Add the fact that all my units will be brand new and just down the street from my own house this sounds like a great way to start out. Is there any reason why building new homes as rentals isn't extremely common? Is there anything I need to know that might change my mind? (like lending, costs, or some other factor).
Any insight would be greatly appreciated.
Thank you,