There are a lot of wholesalers that will lockup a deal on the MLS lower than asking (the price on the MLS) and then sell it to someone buying.

It lowers your living expenses immediately, gives you landlord experience with less risk, and you’re building equity while you live there.

That said, brand-new construction can mean lower maintenance upfront and strong initial appeal.

Also understand that first-timers almost always get lower LTV/LTC on the first few flips, so expect to bring more cash in until you build a track record.

If the property qualifies as a separate activity, you may be eligible to claim bonus depreciation through a cost segregation study, which can provide substantial upfront deductions — particularly beneficial if you are in a higher tax bracket.However, if your income level is lower, the cost of the study may outweigh the benefit.

This wasn’t a hate post by any means, but just curious to know how in the hell are they still doing some very aggressive loans even though, values have been coming in lower these last 12 months.  

Middle  - lower middle are the last generation or two generations ago of these facilities rehabbed.  

If you're looking for newer construction, your return is typically lower. 

I am sure your construction costs are lower in Little Rock Arkansas than in Philadelphia which explains why you can build at the cost basis mentioned in your post but unless the property is located in an irreplicable location I would urge investors looking to build ground up to seek better margins than building to 87% of the completed value.

The biggest challenge is getting owners to understand this as few actually follow any industry data.One of the risks this will cause is lowering of screening thresholds to fill vacancies.