What is the hardest part of being a Landlord? If you have good tenants, the hardest part is staying on top of maintenance and dealing with the calls of a broken toilet late at night.
If you could avoid that headache, buying more rental property would be an easy choice, right? The best solution is to purchase newer rentals, to minimize the cost and frequency of repairs.
Just one problem: finding good newer property to purchase! Most newer single family homes sell at a price that is not cost effective for rentals. Individual townhomes are not an easy solution, as many condos and townhomes restrict rentals. If you do find townhomes that are not restricted in rentals, then the condo/HOA fee can make it less efficient of a rental.
Solution? Find a community and build some rentals yourself. This is easier than you think. If you have a good builder partner, they can handle the work, while the investor handles the capital.
If you are interested in working on a development project, the time to build that stock is now. During the recession, building almost ceased, so now there is pent up demand for new housing stock in rentals and sales. This provides the investor the opportunity to enter a hot market and build future appreciation.
The reasons Central PA makes the ideal place for an multi-family development right now:
- Cap rates are higher in smaller markets. Contrast a CAP Rate of 6.36% (10 Year average) in Philadelphia with 6.91% in Lancaster and 7.34% in York County
2. The demand for rentals are strong. With many manufacturing and supply chains housed in the area, jobs are plentiful which boosts the housing demand.
3. A low inventory of newer units means the developer will be rewarded when time comes to sell with a healthy investor demand.
For a list of options to build rentals in Central PA, and builder partners, contact us for further details. Call Naomi at 717-819-2825 or email email@example.com
This is part two of a three part series: New Home, what you need to know. Click here for part one.
Want to buy land and build a home? How hard can it be?
If you have looked into this option, you may know there are many details of which you need to be informed. Have no fear, your new home experts are here to help.
Building on your own land does not need to be scary and hairy, but should be approached with an understanding of the details involved. Here are key details to fit your plan.
Understand that the cost is more than House + Land. In our day of regulation, complying with the details of constructing a new building has become increasingly burdensome. A builder with experience will understand how to break down these cost for you. They include:
- Costs for Well and septic if applicable.
- Costs and availability to connect to public utilities if available
- The requirements for a ‘Storm Water Mitigation Plan’. Every new home must have a way to control water runoff during a storm.
- Driveway requirements: if on a hill, state road or other limiting factors, a driveway permit may not be granted, which can shut you down before you get started. The length of driveway may also have a huge impact on your budget.
- Costs to remove trees, rocks and prepare the site. These can be staggering if you have not prepared for them.
- Heat source: is natural gas available? If not, will you bury a propane tank or use a high efficiency heat pump?
Given all these questions, costs and requirements how do you proceed?
Do not buy land without doing your homework! Many regrets have formed from this mistake.
Our new construction experts can help you through the process to arrive at your dream home on your own land.
Not every builder will build on your own property. You will want and need a builder who builds many homes ‘On your own lot’ and is intimately familiar with costs and requirements to do so.
Working with many of the local builders, we can match you with a builder who shares your vision and can make it a reality WITHIN your budget and time frame.
Call us for a free no-obligation consultation to start the process of taking your dream home from a dream to a reality!