It’s become all so routine in certain areas. Visit the county recorder’s office and get some leads for your next investment. It’s a solid strategy and the part time investors might be thinning out and that’s a good thing. But if all you do is concentrate on existing real estate you’re missing out on a powerfulnew construction rentals opportunity. Don’t buy a foreclosed property but build your own rental from the ground up.

Does that make sense? Do the costs associated with buying a lot and building a brand new home really turn the sort of profits you need? Yes. Not everywhere of course but there are ways to identify places where it’s better to build.

When you evaluate any existing distressed property, you follow the same routine. You first look at the acquisition price then proceed to a thorough property inspection. After the inspection and a meeting with your contractor, you determine how much it will take to repair the home and finally how much the home will either sell for if you flip it or how much you can get for rent each month. That’s how it’s done but sometimes there are areas where the real estate is much more expensive compared to surrounding areas based upon the location of the property. In a highly desirable, established neighborhood there will be more value placed upon the location and less so on the square footage.

New construction however can be more profitable if the land prices are a current bargain. Buying a lot that is much less expensive than a similar sized lot in an older, more centralized neighborhood means can provide you with greater profits, both short and long term. As with any investment, regardless if it’s new construction or not, the math has to work. But don’t discount the possibility of new construction as a real estate investment.