Updated about 1 month ago on . Most recent reply
First Investment Property
Hey All,
Assuming the numbers work out, thoughts on a new construction duplex investment property in FL? Any reason to stay away? I like the idea of hopefully low maintenance for my first investment property.
Most Popular Reply
Matthew Soucie — new construction duplexes in FL can work, but the numbers need to be stress-tested beyond the builder's pro forma, which is almost always optimistic.
Three things to model explicitly before committing:
Property tax reassessment on day one. Florida reassesses at purchase price. If the seller's taxes were $4,200/year on their stale assessed value, yours could jump to $7,500–$9,000 year one. Run your cash-on-cash at the reassessed number, not what's on the listing.
Insurance is not a placeholder. FL insurance on a new duplex can run $4,000–$8,000/year depending on county, flood zone, and wind mitigation. Get an actual quote before you close. This single line item has killed deals that looked solid on paper.
New construction rent premium has a ceiling. If tenants can find a 3-year-old comparable unit at $200 less, your vacancy and renewal assumptions need to reflect that reality.
Run your deal at base, downside (10% vacancy, flat rent), and stress (insurance spike + tax reassessment + vacancy combined). If it still cash flows positive under stress, you have a real deal.