All Forum Posts by: Miguel Suarez

Hi Miguel!

It’s great that you’re thinking about leveraging your dad’s land for a rental property, especially since new construction gives you the ability to create something purpose-built for tenants. Since the property already has an existing home and access to a main street, you may be sitting on a real opportunity—but there are a few critical steps and considerations to take into account before moving forward.

The first step is determining feasibility. Just because there's land available doesn't automatically mean you can build on it. You'll want to check with your local planning or zoning department to confirm whether a second home can legally be built on the lot. Depending on how the property is zoned, you may need a variance, rezoning, or to formally subdivide the lot to make it legal for another dwelling. The city or county will also have rules about setbacks, utility easements, and how close you can build to property lines. Additionally, find out whether the existing utilities—water, sewer, electric—can be extended to a second structure, or whether you'll be required to install new, separate lines. In some places, the answer may be "no" unless you're building an accessory dwelling unit (ADU), duplex, or following other specific regulations.

If you can build, your idea for a 2-bedroom, 2-bath home is a strong one. That size is highly attractive to a wide range of renters, from working professionals to small families. The next step would be to analyze whether it’s a good investment. You’ll want to research rental rates for similar 2/2 homes in the area and compare that to the total cost of building—this includes everything from permitting and utility connections to labor, materials, and inspections. You can then estimate your potential return using a rental property calculator. Be sure to include all ongoing costs like property taxes, insurance, and potential property management if you don’t plan to manage it yourself. If you're financing any part of the construction, the loan terms will also affect your bottom line.

New construction has its pros and cons. On the positive side, everything is brand-new, meaning lower maintenance costs in the early years and potentially higher rents due to modern finishes and energy-efficient systems. You also have the chance to build specifically with renters in mind, choosing finishes and layouts that are both durable and appealing. On the downside, construction almost always comes with surprises. Permitting delays, rising material costs, and contractor issues are all common. Utility connections—especially sewer and water—can be expensive and slow-moving, and failing inspections during the build can lead to costly delays. Many experienced investors recommend budgeting an additional 10% to 20% for unexpected costs and getting multiple quotes for each major part of the job to keep contractors honest and competitive.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello,
I am moving from California to Kentucky for work possibly before March. I was wondering if anyone knows which areas/cities are best to buy a house. I am thinking a 2-3 bedrooms and minimum 2 bathrooms. My work is located in Louisville, Kentucky but I don't mind driving 20-30 or a little more. Budget wise I would like to stay below $220,000 for the house. 

Any expertise/advice from anyone would be great! :) 

-Miguel Suarez

Indianapolis

@Miguel Suarez  in the same boat..following

I was born and raised in Indiana currently living in Arkansas and I will tell you there are opportunities, but it definitely depends which part (for both)!

I have my eyes on an another SFR in a location I have been investing in regularly the past couple years in AL. The numbers just make too much sense. I could definitely use some assistance if interested!

Respectfully,

Matthew Janes

I'm based in California - following this.

@Miguel Suarez

What are you trying to get out of the investment? Is this a pure cash flow play or long-term growth through appreciation? Also, what is your tolerance for risk and repairs? 

Things like the age of the home, landlord laws, average snowfall, POS and township violations are risk factors you should understand before getting excited about a proforma or 1% rule.

If you want to connect, I'd happily share my experience with you and how I acquired my homes in Texas, Georgia and Florida. 

Have a nice day. 

Hi: 

I have had a good experience in Indianapolis. The state laws seem even handed unlike California where the tenants have all the rights. Also, there are a few large commercial projects going on that will bring more jobs to the area.