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Updated over 5 years ago on . Most recent reply

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Joseph Niedermeyer
  • Rental Property Investor
  • Jacksonville, NC
2
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21
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Building (literally) a rental portfolio

Joseph Niedermeyer
  • Rental Property Investor
  • Jacksonville, NC
Posted

I’m in a unique situation. I’m seasoned in the construction industry and a general contractor license is in my not too distant future. My day job is building material sales (lumber, doors, windows, drywall, block, shingles, etc). As an employee, we get a great discount on materials. If I designed and built some rental units myself, using my discount, I’m probably saving 20-25% on the construction of a unit. My thought is to refinance the construction loan into a more conventional mortgage and pull out any additional equity available to keep building more. Anyone build their own rental houses? Is this a feasible strategy? I can probably build 2-3 units a year as a part of my bigger investment strategy of buy/hold.

Most Popular Reply

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Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
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Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
Replied
Originally posted by @Joseph Niedermeyer:

I’m in a unique situation. I’m seasoned in the construction industry and a general contractor license is in my not too distant future. My day job is building material sales (lumber, doors, windows, drywall, block, shingles, etc). As an employee, we get a great discount on materials. If I designed and built some rental units myself, using my discount, I’m probably saving 20-25% on the construction of a unit. My thought is to refinance the construction loan into a more conventional mortgage and pull out any additional equity available to keep building more. Anyone build their own rental houses? Is this a feasible strategy? I can probably build 2-3 units a year as a part of my bigger investment strategy of buy/hold.

Yes this is a great strategy as long as you can find the land. That’s the key. Also you need a good pool of suns as everyone is very busy right now. 

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