Brand new, don’t know anything.

[Mark Gould]

I am brand new and looking at different options for investing in real estate. It seems to me that if I were to buy a plot of land, and build a duplex on it, wouldn’t I start off with equity in the house? Instead of finding a deal that makes since with an already built duplex, isn’t it already less to build than it will be worth when finished? And if I rent them, wouldn’t it be more likely for cash flow since the loan amount would be smaller.  Also looking for recommendations for resources in this area please. 

[Lydia R.]

Brand new, dont know anything doesnt mix well with I'm going to jump right into new construction. There are a lot of moving pieces there and it might be a lot to take on as a total newbie. In theory if you can purchase land at a reasonable price, build a new construction duplex at a reasonable $/sqft and then rent the property at an amount that will cashflow, yes it makes sense. Building one property instead of multiples is going to be more expensive overall because you don't have the economies of scale. That being said, what you're proposing is not impossible, just exceedingly more difficult due to your lack of experience. Perhaps partnering with someone who has more experience? Find a builder and offer to provide the capital/get the loans if they will contribute their expertise and walk you through the process. Build to rent is an increasingly popular investment strategy.