Pre-construction vs. Rentals

This question is for those investors who invest out of state. Do you prefer to invest in pre-constructioins or rentals ( SFH or Apartments )?

My thought is:

Pre-construction: 1) advantage: no tenants hassle, no property management company to hire. 2) disadvantages: no cash flow equity to gain besides appreciation.

Retals: 1) advantage: cash flow to increase equity gain while enjoy possible appreciation gain. 2) disadvantage: need to deal with tenants and find good property management company.

What is your thoughts from your personal experience and why? It would be great if you can list advantages and disadvantages for each option.

Dennis

Hi,

I don t think if you are talking about flip pre-construction contracts, you can t talk about investing at all. This is more related with speculation since it is based on the fooler theory.
Instead, according with some recognized and acclaimed experts, INVESTING in income-producing properties is the only correct way of INVESTING in RE ( this is also my believe).

Paulo