Interesting post.

I have always found investing in new construction to be very interesting.
2 of my purchases have been new construction and the remainder have been resale.
I have a friend who invests exclusively in new construction. She often buys wholesale from the builder. As the property is being constructed, the marketing efforts are in full swing by her Realtor. Her objective is the have the property rented out as close to the closing date as possible.

To be honest, I have always been slightly hesitant of this strategy versus, buying resale. When I buy resale, I know, and can crunch all of my numbers today, in order to make sure the property cash flows.

My hesitation with buying exclusively new construction is that I do not know what some of the market rents are going to be in a new area or subdivision. As a result, I find it difficult to predict what, if any positive monthly cash flow I will have on the property, because I do not know the market rents.

Regards,
Neil.