thinking about doing ground up construction

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Does anyone here do ground up construction of SFHs and then hold them as rentals as a strategy? If so can I ask you to share some of the basics of your process and strategy? I occasionally come across areas where I want to own a rental, but can't find anything for sale other than empty land. Is it crazy to buy the land, get a construction loan and a builder to build a house, then rent the house out and hold as a rental. I don't know if losing the economies of scale of having a builder build a single house will mean this will never work financially though.

Originally posted by @Ari Bachrach :

Does anyone here do ground up construction of SFHs and then hold them as rentals as a strategy? If so can I ask you to share some of the basics of your process and strategy? I occasionally come across areas where I want to own a rental, but can't find anything for sale other than empty land. Is it crazy to buy the land, get a construction loan and a builder to build a house, then rent the house out and hold as a rental. I don't know if losing the economies of scale of having a builder build a single house will mean this will never work financially though.

Yes build for rent is a great strategy. New rents faster and for more and requires less maintenance for the few years. Some institutional investors / funds are building entire for rent communities due to lack of supply. The bottom line It's all about the numbers.