Updated over 5 years ago on . Most recent reply
Getting started with rentals
I have 40 acres in an Arkansas town of 3000. No jobs. Lots of retirees. Somewhat a tourist town.
My land has no mortgage.
I'd like to build 5-10 single family rentals but I'm worried about cash flow on new construction.
Looking for advice and ideas to help get started.
Most Popular Reply
- Rental Property Investor
- Durham / Raleigh (Triangle), NC
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@Billy Hopper - I had some vacant land in NC for which I was able to locate a builder who was very active in the area and who already had many plans to choose from that he could build for a set price. This let me know going in exactly what my cost of construction would be, and I already knew my holding costs. Now I opted to sell the completed home (which actually came in slightly UNDER budget) - but my Plan B was to make it a rental. And since I knew what such a house would rent for in my market, I was certain that I'd be cash-flow positive as a rental if for some reason I decided not to sell. So I'd start with finding an active builder of spec homes in your area.
- Jonathan Taylor Smith
