sent you a pm
Originally posted by @John S. :
Hi community, I’m interested in investing in a new construction 4plex in Jacksonville, FL. The units are near a larger apartment complex called Lakeside apartment, 8700 Southside Blvd, 32256.
I need to put 10% down and wait for construction to finished mid-2020. I calculate ROI is ~6% for 25% down. The ROI excludes 75% placement fee. With placement fee deducted for 4 units, ROI drops to ~4%. What is the community's opinion on this investment? Is it too risky investment since it cannot rent until 1.5yrs later?
If you have bought new construction as rental, can you share your Pro and Con? I have concerns a 4plex is a worse investment than multiple SFH because the latter appreciate faster.
I'm not sure I would want my money tied up until 2020 for something not returning any cash flow. I think there are better deals to be had now, especially here in Jacksonville!
I agree if you are getting nothing for your money for a long time it is not using your money to get your time value of money....If you invest 10k now what is it worth in 18 months? It should be around 10578.00 that is at 5% interest on your money. So if you don't use that money for something other than this project you will be losing over 867.00. I know that isn't a lot of money but I would like it if I had it.
I find Jacksonville a good rental market. I have a couple SFH and a couple townhouses and I am very happy. BUT I wouldnt invest in a property that will tied up my money for almost 2 years.
Thanks everyone (especially Lesley) for highlighting the risks with my purchase agreement and the opportunity costs of waiting 18 months to complete the 4plex.