Have been throwing around the idea of building a quad with an investor friend of mine as my first ever rental property? want your opinions if you think this is wise
Its all about the numbers. Material and holding costs. management costs. the value of the leases and your ability to secure long term financing.
For me the goal would be to pull most of my material and holding costs out when we secure long term financing so that money will be used for other projects later.
Hi and welcome to bigger pockets! I think we need a little more information to answer this question but i'll try and dive into it a little. I did a quick search of your town to see what quads were for sale and there isn't much on the market for sale. In my market and a lot of others at this point it is much cheaper to buy and existing structure than to build from scratch. If the reason you are trying to build is you have a competitive advantage such as your in construction and could save on costs it could make sense. Other wise I would be very hesitant to jump into a new build without a specific reason. It is much simpler and safer for most new investors to buy an existing property get a great home inspector a lawyer to check your paperwork and get into a new build once you have a team put together!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.