I believe you have a very good idea for long term rentals. You must research the market in this area to see if rentals in this price class are needed. You don’t want to be stuck with houses you can’t rent or have to rent at a much lower rate. Also, you must get high quality tenants that will keep the properties up. If the properties are not kept up, the homeowners in this new community will be mad at you and could make your life and investments miserable.
Posted by Gary O on February 12, 2002 at 11:22:27:
I was wondering if anyone out there ever invests in new homes in a new developments. There are several small subdivisions (all track homes) where I live, new ones going up daily. Most of these homes are around 1200 s/f and are listed around $100,000 - $110,000. If you could purchase two - three of these homes for about $90,000 - $95,000 apiece would this be a good deal for rentals or L/O’s. I was thinking that it would be because they are new homes and you therefore would not have the hassel of repairs (or as many repairs). Also for this town these would be a little higher end rentals and therefore you may not have the problem with low class tenants (as much). Please give me your input. Also, what I have is about $50,000 cash from my mother that sold her rental and wants to reinvest it all to avoid CG. Please,Please,Please I need input. I’m totaly green to this stuff, but desperately want to learn.