Build vs. Buy: Which Is Best For Your FIRST Rental?
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Dave Meyer: Building vs. Buying Your First Rental
Building a duplex as a first home using an FHA construction loan is generally not advisable for new investors due to the complexity of managing construction projects, potential strain on relationships, and the risk of building a product not in demand in a market lacking multi-family properties. It's often better to buy an existing property in a more established market.
Dave Meyer's Sweet Spot: The 1970s Build
The ideal construction era for rental properties, balancing quality and modern appeal, is the 1970s. Homes from this period often feature good original build quality, more desirable layouts, and avoid the significant risks associated with older systems like knob-and-tube wiring or asbestos found in earlier constructions.
Dave Meyer on House Hacking: Honesty Over Secrecy
While it's possible to manage a house hack discreetly by acting as a property manager and distancing yourself from ownership, it's ultimately more beneficial for building trust and managing expectations to be transparent with tenants about your role as the owner.
