New Investor - Does buying a new build make sense?

Question

I've been listening to the Real Estate Rookie podcasts and am considering buying rental property in Parker or Hood County, Texas area (Granbury, Weatherford, etc). I'm curious if anyone has had luck buying new builds to rent? Some of the builders are offering more attractive financing. I realize the most money to be made is from buying way under market value, renovating, and then either renting or selling-- but that seems like an intimidating place to start, especially if you don't have a team in place. Thanks for your insight!

Melissa Justice · Answer

Hey @Jenny Warren,

Great question! New builds can absolutely be a solid option, especially for first-time investors. While it's true that buying under market and renovating can build equity fast, it also comes with more moving parts—contractors, permits, surprises, etc. If you don’t have a team in place yet, starting with a new build can offer peace of mind with lower maintenance, warranties, and fewer headaches up front.

Also, builders offering favorable financing or incentives can make the numbers work better than you might expect.

If you're exploring outside your local market or want more guidance, we at Rent to Retirement specialize in helping investors buy new and renovated properties in landlord-friendly markets, with teams already in place. That kind of support can be a game changer when you're getting started.

You're asking the right questions—just keep moving forward, and the path will get clearer!

Wishing you much success,

Melissa Justice

Investment Strategist at Rent to Retirement

Drew Sygit · Answer

I would think that new builds have a longer time horizon to cashflow than other acquisitions.

An owner will have less Cap-Ex expenses because it's new and should only get Class A tenants, with miniumum issues.

So, it's a tradeoff of cashflow vs appreciation.

As long as an investor understands this...

Kristin Flores-Brockman · Answer

Hello! I am a Realtor in DFW and my loan officer and I will be hosting a meetup tomorrow. We'd love for you to come. It would be a great introduction into various investing strategies and financing options.

Details:📅 Thursday April 24th⌚ 6pm - 8pm🍕 Delucca's Pizza- Alliance Town Center📍9574 Sage Meadow Trail Fort Worth, TX 76177

This is a FREE Event but Registration is REQUIREDSorry, 18+ only, no kiddos

Jaycee Greene · Answer

Hi @Jenny Warren, welcome to the BP Forum! I'm assuming these BTRs are single family homes, not duplexes?

Brad Hunton · Answer

I live just outside and Granbury and have done it twice here, but I buy a new home as a primary and move out and then rent. It has worked great so far. The last house I bought was just completed and I got about a 20% discount. Even with higher interest rates I rent it for $300 more than my mortgage. Not a big margin but with it being brand new I'm comfortable with the spread.

Jaycee Greene · Answer

@Brad Hunton Sounds great - glad to hear you've included/incorporated all of that in your thinking. With the potential appreciation in that area, you could very well have a much more valuable asset when you are looking to retire! Good luck to you!

Brad Hunton · Answer

Taxes and insurance are escrowed so I include that in my mortgage. The margins are tight but with it being brand new I am betting for the first 5 years repairs will be minimal. Even if they aren't my W2 and reserves would see me through. I am bullish on Granbury appreciation and we still have many people moving into the area helping to keep rents climbing. Not everyone would be comfortable with my approach and that is OK, I'm not looking to retire in 5 years anyway.

Jaycee Greene · Answer

@Brad Hunton If your rent is only $300 higher than your mortgage, aren't you cash flow negative when you factor in just the taxes and insurance (not to mention any repairs/maintenance), unless those are escrowed into your mortgage payment?

Hallie Cranford · Answer

I have a property in Weatherford with 2 houses on one property. I use them both as mid-term furnished rentals. They stay rented. We are going to sell them to purchase a BNB. Would love to show you them. They are listed currently. The address is 1113 N. Main. They are renovated.

Cory Babb · Answer

New Construction will be more lucrative, I've built in the areas you mentioned. Always available to share experience and support!

New Investor - Does buying a new build make sense?

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