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Rental Income Podcast With Dan Lane

Are New Construction Rentals A Good Investment? With Zach Hjornevik (Ep 353)

Rental Income Podcast With Dan Lane

Rental Income Podcast

Business, Investing, Entrepreneurship

4.8836 Ratings

🗓️ 8 February 2022

⏱️ 27 minutes

🧾️ Download transcript

Summary

Zach shares his experience investing in new construction rentals. We talk about what he's looking for in an area to invest in, we talk about if he upgrades the property or rents it as it comes, and his unique way of finding tenants.

We also look at his numbers for a recent deal including what he paid for the property, his mortgage payment, the rent, typical expenses, and his cash flow.

https://rentalincomepodcast.com/episode353

Transcript

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0:00.0

inspiring interviews with today's top landlords this is the rental income podcast and now

0:08.4

dan lay jack why do you like buying new construction rentals yeah dan for me new construction

0:14.5

makes the most sense in my investment portfolio because i get a quality asset an a class-class asset. I always look for good neighborhoods.

0:25.0

You know, for me, I'm looking for those neighborhoods where there's anywhere from 700 to

0:29.5

1,000 homes that they're building. And there are only about five different models that that

0:35.0

builder's offering. So a lot of cookie cutter low to mid grade new

0:39.7

construction. And for me, I don't have to budget any maintenance dollars for repairs in at least

0:46.3

the first year. And honestly, probably longer than that, this is a brand new property. Everything in there

0:51.7

is brand new. So you really shouldn't need to fix or replace anything

0:55.9

for quite a long time. But I'm curious to see if there's a downside. And I want to get to the bottom of

1:01.8

our new construction rentals, a good investment. Usually with new construction rentals,

1:07.1

you can't negotiate on the price. So you're not going to get a screaming great deal on a new

1:11.9

construction property. You're probably going to pay the market price. But the upside, I think,

1:17.1

is that they're probably very easy to rent. And I think that they're probably easy to manage

1:22.2

because you're not going to have a lot of maintenance and repair issues. It sounds like

1:26.5

Zach's buying in very good neighborhoods. So they're probably going to appreciate a lot better maintenance and repair issues. It sounds like Zach's buying in very good neighborhoods,

1:28.8

so they're probably going to appreciate a lot better than a property that's in a marginal

1:32.7

neighborhood. So I want to learn more about exactly what Zach's doing, exactly what he's buying,

1:38.5

and I want to take a look at his numbers. Joining us on the show today from Austin, Texas,

1:44.0

is Zach Yanovic. We'll take a really

1:46.2

quick break to thank our sponsors. We'll come right back and we'll talk to Zach. A good deal on

1:51.4

a rental property isn't going to last very long. To win properties today, you need to move

...

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