I have many investors diving more and more into the new construction communities here in the Tampa Bay Area. Has this proven successful for anyone over the long term for buy and hold properties?
I only know of one investor who utilizes VA loans to buy new construction and rent them out. His mindset is that there won't be much repairs for a long time, tenants are top notch because they are in a great home, and he plays the long game. I only think new construction could work as a buy/hold if you did a sort of multi unit building like a few town homes or something, sold of 1 or 2 and kept 1-2 as a airbnb setup. This would have to be in the right area but I don't see you getting an amazing ROI with cost of construction, etc.. on a long term tenant. I like the idea of building 1 structure of 2 town homes, selling off one and then maybe you cash flow the other. I haven't found anyone doing that type of thing though.
I’ve been building new construction and renting since 2002....with the exception of 2008-2015, where I was scooping up foreclosures. I’ve found that new is a very good niche to be in as there is very little maintenance and you do get a much better tenant who is willing to pay a premium and take very good care of the unit....it’s not for everyone, but I’ve had some very good luck there.
@Brian Pfaehler I know a veteran that does this he buys with VA, waits a little while then rents it out, buys brand new construction too.