Has anyone purchase brand new homes as rentals?

Buying & Selling Real Estate
11yFollow

Has anyone purchase brand new homes as rentals?

James WachobBusiness Member
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes

Last year we were blessed to build 100+ brand new homes for investors, in the Memphis, TN area. The investors included: hedge funds, Australians, New Zealanders, and for some reason a lot of people from San Diego. Memphis, is a strong rental market and an abundance of cheap lots made it possible for the ROI to work. I am a Real Estate Broker with CrestCore Realty. CrestCore handles my investors property management needs. So living abroad isn't a problem.

What benefits would an investor realize in a brand new home?

What kind of returns are most seasoned investors happy with, if they are buying a new home? 

1Reply
17 views

2 Replies

Jump to latestLatest
  • James WachobBusiness Member
    OP
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
    11y
    1Reply
  • Douglas SkipworthBusiness Member
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    James,

    We have found 2 major benefits from managing built-to-rent homes for our investors.

    1. The maintenance costs associated with a normal rental house are virtually non-existent for a newly build home.

    2. The new builds attract a stronger and larger-than-normal applicant pool of prospective tenants, which allows us to be more selective in finding the perfect resident for the home.

    Because of those 2 benefits, we are huge fans of new construction as rentals!  Please keep building them.

    Best regards,

    Investor's Guide to Memphis Real Estate
    View Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free