Being based in Houston, I usually recommend to first time investors to start in the suburbs rather than close to downtown. While getting a young professional rather than a family of 5 sounds great, dealing with older homes and the city may be too much for a first timer.
I'm curious to know if experienced investors would agree with that. Based on how you got started, do you think that's wise advice?
@Ashley Brooks I have had some similar experiences and generally agree with you! In my area, there is a lot of new construction that make decent long term rentals. When looking to help someone acquire their first deal, I often show them some of the new construction options because the repairs/maintenance should be light the first 5 years. As long as the numbers meet that investors criteria, I agree that is a great first/second property to tackle!
I agree with both. A newer investor may not have a team to rely on if something goes wrong. By advising them to start with a new construction they avoid, hidden surprises and the initial rehab work. They also reap the benefits of new appliances, among other things.
@Ashley Brooks In my area of New England the only real new construction is mostly over a million dollars or so over priced you would not buy it.
The only way to get into the game in my area is to find something the numbers work on and quickly jump in. Granted there’s better and worse properties and I just missed out on a nice one because I can’t view things on Saturday right now due to my work!
In other regions of the country where more affordable new homes have been built in the past decade I would agree with you that new might be better for beginners.
However, I’ve owned about 10 hundred year old properties and not had too many issues other than normal wear and tear.
I feel if you’re going to own real estate you should in the beginning find at least a plumber and electrician. Then you can search on the local Facebook page and try to locate a handyman. My FB page is quick to give 15-20 recommendations for the same people.
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