Most rental property investors look for existing homes to buy. Howard Jacobson takes a different approach. He builds them.
On this episode, Howard explains why building new rental properties can be more profitable than buying existing homes. He shares how new properties can rent faster, attract better tenants, require very little maintenance, and create significant equity from day one.
We talk about what Howard looks for when buying land, what makes a good building lot, and the type of rental properties he likes to build, including the ideal number of bedrooms and bathrooms. Howard walks us through the building process and explains why you don’t need to be a construction expert to do what he does. He says the business is much more about managing contractors and managing money than actually knowing how to build a house.
Howard also shares how much equity he typically creates when he builds a property, how he finances construction without putting a lot of his own money into the deal, and some of the challenges that come with building smaller, affordable homes.
We also talk about how Howard handles repairs when they eventually come up and why he believes building rental properties is something almost any investor can learn to do.
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