Build to rent florida
Hi everyone
After listening bigger pockets for a while, I am ready to investing out of state now, primarily focus on Florida and Texas, I have 300k available to investing,and I can get about 280k heloc later, I like to purchase 3-4 new constructions , is it Build to Rent model is good ? Or anyone can recommend some good reputation companies?
Thank you
Most Popular Reply
@Qiang Chen - With new construction, you tend to pay a premium for the property compared to resale. As a result, your cash flow is usually lower. But the plus side to it is your maintenance and repair costs tend to be way lower and the property comes with some sort of builder warranty for major issues. However, if you're looking out 3-5 years, with appreciation and the rising cost of rent, you could be looking at a decent cash flow with a low cost to maintain property. As long as you are planning on holding for at least 10 years, I can see the upside.
In addition, with your level of funds, you have the ability to find commercial multifamily properties. You could add 8-10 units to your portfolio in one deal and I assure you, with those level of units, you will be cash flowing way more than new construction. Economies of scale work in your favor. If I were you, I think you might get more bang for your buck going this route.
P.S. The one thing about Florida that you need to be aware if is flood insurance. A lot of properties in Florida require it and it is costly so you need to build it into your numbers.