Think-Realty-Magazine-October-2018

Creating Investment Oportunities Through the Build-To-Rent Model

I nvesting in new construction single family homes is a strategy that often flies under the radar. While many investors comb through run down neigh- borhoods searching for low price “fixer-uppers”, new construction investors do pretty much the opposite, and make solid returns in the process. Here is a short list of the top reasons to purchase newly built homes for your portfolio: 1. Avoid Maintenance, Time and Money When you buy an older home you are typically looking at adding a good deal of time and money to your initial investment in order to turn the property into some- thing desirable for renters. Even after the initial rehab you are dealing with older appliances, foundations, and roofing that will need constant care and replacement as their age takes its toll. When you purchase a new build, any problems that arise initially are the builder’s problems, not yours, as new home warranties can be good for 1-10 years. In addition to extended warranties, new construction homes are built with Mint-condition appliances. This

Memphis Investment Properties New Construction

will save you or your property management company money and headaches when dealing with leaky faucets, busted hot water heaters or sketchy air-con- ditioning. 2. Greater Supply The supply of older, but cheaper homes becomes scarcer each month.These available properties are being fought over by investors. Unlike foreclosures or short sale listings, the supply of newly constructed properties is ever increas- ing. The ability to add properties to your portfolio according to your strategy can make a huge difference in your success.

As with most strategies when investing in real estate, new construction has its pros and cons.You might pay a bit more on the front in, but the money and time you will spend over all, in addition to higher quality tenants, could more than compensate for the initial cost.You could, in all probability end up with a much longer-term investment with less headaches, not to mention a substantial cash flow. Our company, Memphis Investment Properties, provides new construction and fully renovated, cash-flowing rental properties in Memphis, TN, with in-house property management. Our Turnkey model allows you to grow your rental portfolio with properties in the #1 cash flowing market in the country. Give us call today!

3. Attractive to Quality Tenants It stands to reason that tenants pre- fer high quality, newly constructed homes in up and coming areas over older, rehabilitated homes in less desirable neighborhoods. Upgrades such as granite, stainless appliances and energy star ratings tend to attract higher quality tenants that won’t mind paying premium rent. New construction homes are built with the latest floorplans and ame- nities. You are supplying what rent- ers are looking for from the start, so there is no need to do a complete tear down and re-build of a 50-year old kitchen. Additionally, new homes are being con-

Brad Reedy, Jim Reedy, James Wachob

New construction homes are built with the latest floorplans and amenities.

Memphis is a perennial market for investors Brand new homes built as rentals

structed in new and updated neighborhoods with good schools, well-kept roads, clean public parks, and low crime rates.This means you’ll have better luck finding quality tenants. ThinkMemphisRealEstate.com • 901-531-9792 Want to learn more? Visit us online or give us a call today.

64 | think realty magazine :: october 2018

thinkrealty . com | 65