New-home Buying
Anybody have any luck with buying new SFH at "Pre-Construction" prices then selling FSBO once they are completed?
How about buying at the other end, when the subdivision is selling out at "Extraordinary Close-Out Incentives"?
Frank
My grandfather, has done something similar. He purchased a couple "Pre-construction" homes and got a pretty good discount from the builder for purchasing more than one, and saved enough to get a pos. cashflow as rentals.
JB
[addsig]
My neighbor has been doing this in a hot area of town. He's sold a couple, L/O a couple others, and rented a few more. By using interest-only loans, he gets monthly CF of $500 or more on the L/O's and rentals. But he puts 20% down so the ROI isn't good. But he wants income.
With the 'forced' appreciation of the builder raising prices as the open new phases of the s/d, he is planning to sell the rentals in a couple years for 15-30% over cost, depending on the market. Or he can refi them, pull out some cash and keep on renting them and lock in a low rate.
Good luck
Peter
The very beginning and the very end -- that's the best time on new construction because that's when the builders are most motivated to make deals. Suggest, however, that you not buy the models when they're put on the market because they're usually "loaded" with extras and even if price is discounted, you may still be paying inflated cost for features that really don't add value.
Thanks!
Any creative ideas on how to get in with less than 20%
Frank