Hold or sale new construction single family

2 Replies

hello bp, who builds new single family homes to rent. I'm a gc in the Nashville area trying to get a little insight on whether its a good idea to hold and rent new homes with 200.00 per month positive cash flow or being that its a sellers market sale and use the proceeds to by rental property. thanks in advance 

It depends entirely on what you're building. 

Typically with the cost of land and the cost to build new homes in the Nashville mkt make bad rentals. The only plus I see is that you can have zero $ in the deal. Build, refinance and the profit you would have made is now just your equity.

Alternatively if you're building townhomes those would make better rentals than SFH

Thanks for the reply Luka. I would be all in at 210,000 with 1518 sq ft with little to no money out of pocket like you stated which is why it sounds appealing but also there is quite a bit of cash to be made to put elsewhere that is why I'm on the fence. 

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