Preconstruction vs old home in the current market

[Musa S.]

Hi Folks,

I am a small investor looking for a rental property under 600K,

alternatively can also invest in pre-construction with upto 120k deposit, and rent or sale depending on mortgage eligibility. 

Any suggestion which option I should chose based on current housing / recession landscape?

Musa 

[Theresa Harris]

Quote from @Musa S.:

Old bugalows under 600k near in Hamilton / Niagara region can go on rent upto 2200 - 2300 (3 bed unit)

This will still generate 300-500 negative cash flow, but thats the maximum I can afford.

Hence I am confused to go with preconstruction and sell on assignment, or just buy an older home?

 If cash flow is going to be negative with new or old construction, go new, but better yet look in another market.  Look for a property manager and go to a less expensive market that will cash flow.