But if you’re aiming for steady, predictable income across multiple units, buy-and-hold rentals might fit better.

It was barely breaking even — and more importantly, he felt stuck.So, he made the hard decision: Sell the property and re-deploy the equity into a more passive and predictable strategy.Here’s the lesson: Even good investments don’t stay good forever.

They’re easier to finance, easier to manage remotely, and more predictable for new investors.With $440K, you have the power to build a strong, diversified portfolio that generates cash flow and appreciates.

NNNs offer predictable income (4.5%–6.5% cap rates) with tenants covering expenses, ideal if you invest in stable markets and strong-credit tenants like Walgreens or AutoZone.

@James McGovern,Absolutely not an idiot for considering new builds as rentals- in fact, this strategy has become increasingly popular and strategic, especially over the last few years.Here’s why this can be a smart move and some key tradeoffs you should know about.Why Investors Like New Build Rentals:Minimal Maintenance CostsEverything is brand new: roof, HVAC, appliances, etc.You avoid CapEx surprises that kill cash flow in older homes.Attracts Higher-Quality TenantsTenants are willing to pay a premium for modern finishes and newer properties.Often longer leases and fewer tenant issues.Stronger Appraisal Value & ResaleBuilders often give you equity at purchase (especially during pre-construction).More predictable ARV (after repair value).Easier Property ManagementLess repair calls = happier tenants = happier property manager.Tradeoffs to Watch Out For:Cash Flow Might Be Thinner (At First)New builds tend to be pricier than older homes in the same area.But this can be offset with higher rents and lower expenses over time.HOAs Can Be TrickyMany new builds are in HOA communities.

While Indy is growing, predicting the growth of an older submarket would require block by block knowledge.If I were buying today, I would look for at least a 3Bd 2Ba, in the price range of $200,000 to $300,000. 

No one probably predicted this. 

Turns out the theory was right, but the decline has been even steeper.You might be able to predict whether a future market will be better or worse than the current one, but predicting how much worse or better is nearly impossible.And don't even get me started on how sponsors could be manipulating purchase cap rate, whether intentionally or unintentionally, by reporting pro-forma caps, non tax-adjusted NOI, and so on. 

Pros: landlord friendly, diverse industries, stable economy, good suburban schools for kids (my kids went to Carmel schools when they were little), insurance costs are reasonable (occasional tornadoes)Cons: property taxes: mine are 2.77% Indy and 2.7% Hamilton County as an investor and they go up with no predictable pattern 17% for both homes recently, if you compare appreciation to California and western states, not as high, winter weather issues (frozen pipes if someone isn't checking on vacant properties

A lot of investors in your position choose to leverage their equity into more landlord friendly markets where cash flow and protections are stronger.Whether you hold or sell depends on your risk tolerance, but if your goal is to scale or flip long term, moving your capital to a more predictable market could make things easier.