Bluffton , SC · Member since 2015 · 75 posts · 9 votes
We have a new small townhouse community under construction currently in our downtown area in the historic district. A small group of 36 homes one block from the the main promenade area where all festivals, good resturants, farmers market, coffee shops are located. It really is a great location with new construction popping up everywhere this past year.
Trying to decide if it's a good investment to buy now before they are completed?? Units starting at $200,000 for 1700 3bed 2bath. Rent would go for $1900-$2000 according to property management company. I really see the value increasing on these in the next few years with everything currently under construction and everything that is planned in surrounding areas over the next couple of years.
If the numbers work for you at that $200,000 purchase price, then it most definitely could be a good idea to buy new and rent out, I just wouldn't look at the possibly of appreciation up front and if makes sense factoring in zero appreciation then it could be a good investment. At those rental rates at least on the surface it seems like it has great potential for a long term hold though be sure to factor in all of your costs, especially the ever incresing HOA fee.
Also do your best to verify that rent rate, some property managers sometimes can be a little "over excited" about the market....
Investor · PA · Member since 2013 · 1k+ posts · 602 votes
10y
Doesn't seem like a terrible way to tie up 200k. I would try to get PITI payment as low as possible so that it might cash flow. If PITI were about 1000-1200 then it might work for me.
If the numbers work for you at that $200,000 purchase price, then it most definitely could be a good idea to buy new and rent out, I just wouldn't look at the possibly of appreciation up front and if makes sense factoring in zero appreciation then it could be a good investment. At those rental rates at least on the surface it seems like it has great potential for a long term hold though be sure to factor in all of your costs, especially the ever incresing HOA fee.
Also do your best to verify that rent rate, some property managers sometimes can be a little "over excited" about the market....
The HOA is an unknown at this point, hopefully I will have the the answer to that later today. Would think it cant be much, no pool, gyms or any of that sort of things, mainly fees will cover landscaping. There are a few second floor lofts/ apartments over a few of the downtown businesses that are going for $1800-$2000 no garage. So I think the rent the PM company quoted is really in the ball park for these units.