Should I consider new construction SFHs as rental properties

2 Replies

Hello BP Community,

I was introduced to BP a couple weeks ago and have been hooked ever since. I just upgraded to a Pro account and am looking forward to exploring further. I have a situation that I am hoping to get some advice on. My wife is a real estate agent and has a former client (who she sold a home to) that has tasked her with finding 3 new construction single family homes that he can purchase around the Atlanta area in the range of $300k - $375k apiece. This would be a great opportunity for my wife but after listening to this week's webinar on evaluating and purchasing rentals (plus running numbers on the BP rental calculator) I don't know if he can get decent returns on new construction (which he is adamant that he wants new construction for some reason). Does anyone have any experience with investing in new construction as rental properties that can lend some advice? Is he barking up the wrong tree, lol?

Thanks,

Brian Bourdua

I believe that would depend on the rental rates he can get for those properties.  Perhaps that investor has some other motive for wanting new construction.

Thanks Tyler.  Doesn't look like enough meat on the bone at current prices and rental costs.  I think he wanted new construction to have to deal with less headaches.  Maybe turnkey would work for him.