Should I build to rentv
If I can get $1,000 rentals on a lot and 1400 sq ft new build for $100,000 all in, why shouldn’t I rent the home? In Dallas a high appreciating market, I want to build a 1400 sq ft 3/2/1 on my already developed lot, medium grade finishing carpet and tile mix, 80/20 brick and panel. The price of the lot and build will be $100,000 roughly all in.
Why don’t people do this strategy more? Someone convince me this is a bad idea. I don’t hear much about this topic. I intend to rent for two years then rip that carpet our, change the counter tops etc and sale
In addition, I imagine I’m allowed to use a bridge type loan where I term out the original construction loan to , say 20 Years. Am I allowed to also refinance from that arv of $180,000 in my case?
I’d love more insight and opinions on this. Any help is appreciated!
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I’m considering this as well. Researching what it costs to build out medium finished 2000 sq ft property. I can buy land for in the 20 range. Pay cash for it all and avoid most of the holding costs while building. Also looking for the downside.