Do the math, you are paying a substantial amount less in interest by doing a principal and interest loan payment.

Run the math both ways.

Don't be in a rush, do your homework, do your math all the way to cost of setup including a bottle opener, iron and new smoke detectors.

@Kenneth Ye your math is wrong.

You paid extra for less cash flow, even if the long-term CapEx benefits were obvious.But when new construction trades at a discount — and comes with a 10-year roof, new mechanicals, energy efficiency, and a builder warranty — the math changes.Lower maintenance, lower vacancy, and predictable CapEx are now being offered at resale pricing or better.That is a different equation than anything we saw in 2015–2023.What I’m seeing in Reno, NV• In 2021, new builds typically sold 12–15% above resales• Today, builders are offering $15K–$40K in incentives plus below-market financing• Several new homes now underwrite better than 1980s resales, even before factoring depreciationIf you only pull comps from the MLS, you won’t see these concessions because they aren’t reflected in list prices.

I work primarily with investors focused on short-term rental–friendly oceanfront properties, and something interesting has been happening here:Many of my clients are applying a modified BRRRR strategy to dated oceanfront condos — essentially:Buy older, underpriced units in established resorts → Renovate to STR-grade finishes → Rent on Airbnb/VRBO → Refinance after 12–18 months based on new income comps → Repeat with equity pull-out capital.Even though condos can be trickier with financing and HOA dynamics, the math has worked surprisingly well when:The HOA allows STR operations.Renovations target higher ADR and occupancy.The appraisal reflects short-term rental income rather than long-term leases.I’ve noticed this approach works best when you treat each condo almost like a “micro–multifamily” — tracking cash flow, management efficiency, and appreciation just like you would for a small apartment deal.Curious — has anyone else here applied the BRRRR method to condos or coastal properties instead of single-family or multifamily units?

I like to do 90% homework online before driving multiple hours in traffic’s.

:)If you want cold, math-driven underwriting instead of hype, it’s worth testing.

I really like what Elealeh said above: "live where you love, invest where the math works".Good luck, and happy to connect!

Hard money might be the more predictable route for bridging the gap.When you make an extra $60,000 for each creative financing deal, instead of losing $10,000 in fees for Hard Money for each deal, well If you can't do the math . . .