Personally, I'd look at what would be needed to make it "new" again. If the paint, flooring, etc are perfect then I wouldn't care about it being just one year older. Also do the new places come with appliances? What about lived in one?
I personally would go with the brand new one if the seller of the 1 year old duplex is not willing to come down $15k. If they did come down, then I’d probably go with the lower price duplex. But when it comes to buying, isnt it all about the numbers. Is the tenant in the new unit going to pay more than the one in the older unit?
Have you tried using the Bigger Pockets calculator to run the numbers to see what the difference can potentially be and how much lower in price you would beed to older unit to be in order to make a difference?
1 year old is new. Why would you need a warranty on a 1 yr old home if it’s built well. I’d prefer to buy the older home! At least you can see how things have aged over the first year. FWIW, my duplexes are between 100 and 130 years old.
Not exactly an answer to your question, but the "Currently there are plenty of new homes never used ready to be purchased and rented out", combined with the fact that an existing owner is selling one of these after just one year got me thinking whether this is a good area to own rentals at all?
If there overabundance of new housing? How long are your expected lease up times/vacancies? If the city/area growing in terms of economy and population?
There may be nothing wrong, but just to be on the safe side, I wanted to point out that not all new construction homes are a good investment.
@Jacob Gallup two things: A "used house" is not the same as a used car. If it has been lived in normally then it should appraise equally with the new one down the street. Secondly, most states have a construction defect period of more than 1 year that should protect you from some sort of major problem (do your due diligence) AND you can purchase a home warranty for the major appliances and furnace, etc. for a few hundred bucks. Keep the $5000 in your pocket and ask the seller to buy you a warranty.
I'm with Anton.....why are there lots of vacant homes in the area.....and why is this seller getting rid of it only a year later? For all you know the place may be a lemon....horrible construction...... etc...there may be a good reason this guy is bailing so soon
IF its a good area and no red flags to tell you its not a good rental, then I would try to negotiate the price even lower on the used one, and probably buy that one...put a few buck in it to make it essentially "new" and keep the extra $$
I wont answer your question, but raise another one. Why is this home being sold only 1 year after purchase, and why are the others sitting? Perhaps this is not as great of an investment as you had hoped.
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