Buying rentals near new construction apartments
Hi, everyone. Quick question: What are your thoughts on purchasing a rental property in an area that has new construction apartments going up? The area seems to be on the rise, but I’m afraid that a rental property, specifically a duplex, won’t be able to compete with the fancy new apartments. My monthly rents would probably be comparable to what the new apartments are asking for and decreasing the rent breaks the 1% rule.
So...should I be nervous of new apartments or is that just a common hazard in the business?