Posted by Jack-e on December 08, 2009 at 16:52:56:
I have not run across anyone who has ever built a new house from scratch for the sole purpose of having a long term rental. There well may be those who have, but I cannot see the that the financial gains would outway buying one in today’s market that is already built? Why do you want to do this? Keep in mind nobody gets wealthy from strictly renting houses. The real money comes when you sell it for much more than you paid for it, if you can. What is the gain and how would it out weigh buying a already built house at today’s low prices? Also, what do you mean by no cost to you? Do you have a benefactor that is going to pay for it? I know this does not answer your questions, but maybe you need to rethink this whole project? I,for one,will be interested in your answers.
I’m attempting to have a new house built on raw land that I own. I’m trying to get help on how to get this accomplished with no cost to me. I’ve found a builder in the area that will do the entire clearing,well,home building and driveway. Here are my concerns a road will need to be cleared to the main road,will gravel suffice,if not who does this,what’s the best way to have a tenant lined up to be ready to move in upon completion. This will be my first rental and I want to avoid anything that needs avoiding,this will be a long term build and hold for rental income,any useful info will be greatly appreciated.
Posted by blogger on December 09, 2009 at 20:14:38:
“…at no cost to me” sounds like pie-in-the-sky thinking and while I don’t blame you, neither do I think it’s gonna work just that way.
Sounds to me like there’s a ton of info you need and don’t yet have.
As Jack says, these days it’s a lot more likely that somebody else’s already built (and now slumped on market) house would be a better deal than a new house.
I’d urge you to look around a lot before jumping on new-build project.
I’ve never heard anybody claim that he built & rented at NO cost to himself.
Normally it’s just the opposite.
He built but was out 25-50% MORE than he anticipated and now he’s in trouble because he owes more than his income can cover.