Is New Construction the Best Play for 7-Figure Returns in 2025?

Question

Hey BP community,

I've been deep in the new construction game, mainly focusing on triplexes in Columbus, OH. With rising interest rates and tighter lending, I see a huge gap in the market for small-scale multifamily developments—especially with the right financing and value-add strategies.
For those of you developing or considering new builds:

• Are you seeing stronger returns with new construction vs. value-add rehabs?
• How are you structuring deals—SPVs, syndications, crowdfunding, or something else?
• What cities/markets are you seeing the most opportunity in right now?

Are you seeing stronger returns with new construction vs. value-add rehabs?

How are you structuring deals—SPVs, syndications, crowdfunding, or something else?

What cities/markets are you seeing the most opportunity in right now?

I’d love to connect with more investors, builders, and capital raisers who are making this work in 2025. Drop your thoughts below!

Drago Stanimirovic · Answer

Hey Robert, New construction is definitely a strong play in 2025, especially for small multis like triplexes. In many cases, returns are beating value-adds due to tighter inventory and better control on build quality and rents. Columbus, Indy, Charlotte, and Jacksonville are hot right now. Most investors we work with lean on SPVs for flexibility, though syndications still have a place. Should you need any help with financing feel free to reach out. Regards, Drago

Caleb Brown · Answer

What are some tips you'd give in finding solid builders? I've had clients interested and have no clue where to start in that niche. Definitely a great opportunity and avenue

Ryan Rominger · Answer

Great to see more investors focusing on small-scale multifamily—Columbus is a strong market for it! New construction definitely has its perks, especially with low maintenance costs and strong tenant demand, but value-add rehabs can still offer higher short-term returns if you find the right deal.

You may want to consider structuring deals like joint ventures, SPVs, or small private equity raises to keep things flexible. As for markets, secondary cities like Indianapolis, Louisville, and parts of the Carolinas are seeing strong rental demand without the intense competition of major metros.

Would love to hear more about your financing strategies—always good to compare notes!

Is New Construction the Best Play for 7-Figure Returns in 2025?

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