Castleton, NY · Member since 2017 · 17 posts · 4 votes
hey BP members, looking to gather some stories and #'s on new construction rental apartments whether single or multi family. I'm wanting to get into smaller(800-1000) sq/ft single family rentals, hoping with low cap-x , and low overall maintenance the #'s could work out and with single family homes you could rent for higher per unit then a complex. Let me know if anyone has done so with success and also any feed back would be great! thanks guys, happy investing -luke
What's your STR market like? I rent out smaller units in that square footage range as STR, and it is great. The smaller units only take about 2 hours to clean well, and traveling families love them. If your area is good for STR's I would say that it is a no brainer.
Otherwise we would rent something like that to college kids. I did that for a decade, and it is rough. In those 10 years, I remodeled 3 times... And so for that reason, I only take college kids whose parents co-sign. That's it. I only trust those kids as far as I can throw them, which isn't far.
I don't think my numbers would relevant to you though.
thanks for your input that is great to know, I agree on the no college kids I'm hoping to rent to a higher end tenet to avoid such an incontinent. I'm planning to spend a little more on the remodel when starting up to have better apartments with less maintenance and in return the tenets will be happy, pay more on rent,rent longer, and also be more opt to keep the apartment in great condition.
and I'm new to investing wasn't sure for the STR market are you referring to storage units? i havent done much research on the topic but have tought of doing so. What is your market like and what things should i look for in one to be good for STR.
I am a home builder in Texas. I have both single family homes and also duplexes that I have built. Started with the single family homes because that is what we know. However, we just completed a 10 unit duplex community and it is great. We built 2 bed/1 bath duplexes. We are in a small town of about 2500 people. They all leased within about 2 months. We took it slow and really screened to get the best tenants. What we like the most is that all our tenants are mostly single older people or maybe a young professional couple. The wear and tear will be minimal compared to our 3/2 homes where they have a couple kids. The only way we can do something in this area is if we build it. Of course we have our time in it but are are able to go in with no money invested and still be at about a 75% ltv. They cash flow day one and the cap x should be practically nothing for a little while. I am in the works to do another project of the same concept with a total of 36 units. Good luck.
nice happy to hear it is working for you Matthew, I'm very interested in what you are doing would you be able to share what the build up costs are like and mortgage as well.thanks for the reply definitely motivates to make it happen