Who is buying new builds and cash flowing?

Buying & Selling Real Estate
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Who is buying new builds and cash flowing?

Vitaliy Zima
Member since 2020 · 30 posts · 25 votes

Curious to know if there are decent size markets where you can buy a new build with 20% down and get minimum 4%+ CoC returns (after accounting for PITI, vacancy, maintenance, capex)?

where are those markets, do they exist in mid size cities? 

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Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
4mo
Quote from @Vitaliy Zima:

Curious to know if there are decent size markets where you can buy a new build with 20% down and get minimum 4%+ CoC returns (after accounting for PITI, vacancy, maintenance, capex)?

where are those markets, do they exist in mid size cities? 


Hey Vitaliy - I'm an investment strategist with RTR (the company @Drew recommended) - I just DMed you :-) I look forward to chatting!

Best,

Melissa

[email protected]313-221-8718
3Reply
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4mo

    I would guess they really do not exist. It's very tough to cashflow today with 20% down except in possibly C class locations 

    7e investments53 Reviews
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    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    4mo

    Contact Rent to Retirement.

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    1Reply
  • Gavin PehlPro Member
    Member since 2025 · 4 posts · 3 votes
    4mo

    The only way we could get a new build to cash flow in our market is to self preform the build. It's a lot of work but they cash flow and the equity is accelerated. 

    0Reply
  • Sara Liskey
    Member since 2026 · 2 posts · 0 votes
    4mo

    Yes, with builder rate buy downs or incentives.

    https://empoweredinvestor.propertyshopper.com/index.php?path=investor.property.view.firstyear&agent_property_id=MjUzMzA6ZjQ0NTJkYTc2YjA4Y2JmYmIyM2NjMmM2YjllOWY1NTk=

    0Reply
  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
    4mo
    Quote from @Vitaliy Zima:

    Curious to know if there are decent size markets where you can buy a new build with 20% down and get minimum 4%+ CoC returns (after accounting for PITI, vacancy, maintenance, capex)?

    where are those markets, do they exist in mid size cities? 


    Hey Vitaliy - I'm an investment strategist with RTR (the company @Drew recommended) - I just DMed you :-) I look forward to chatting!

    Best,

    Melissa

    [email protected]313-221-8718
    3Reply
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