Build or buy 1st rental

4 Replies

I want to get to started in renting properties. I'm curious in if I should build a rental property or purchase one.

I inherited an acre wooded lot that a home could be built on. The requirements to build are a 1700 sqft min with an attached 2 car garage.

Before I went through the process of hiring a contractor to evaluate and price out, acquire drawings and talk with the building department. I wanted to know if building a rental was worth it.

I've purchased around 20 SFHs for rehab/hold/rent over the pas 10 years.  Deals are difficult to find currently, so I considered a build/rent.  The numbers worked if I GC'ed the build myself plus would be a fun project.  However, the purchase of the vacant lot fell through and I've not found another site to build on.  

I would recommend to REALLY do your homework on New builds. 

PROS:   very customizable, brand NEW and FRESH everything,  control

CONS:     fees, permits, fees,  time table could be 9 months+ ( I don't really know, do the research) extra fees,  and maybe some more fees

Good luck , and I hope to learn much more as well.  Long term goal of mine