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Investing in real estate isn’t something that involves using just one strategy. The best strategy for you depends on the type of investor you are and the current market dynamics. In 2023, build-to-rent (BTR) is quickly becoming the most effective investment strategy for beginners and experienced investors alike.
BTR gives investors the opportunity to purchase new construction properties below market value in growing locations. There are many advantages associated with using BTR to grow your investment portfolio, which include hardly any maintenance, builder warranties, substantial appreciation in growing markets, the ability to attract high-quality tenants, and more financing options. We’ve started using a unique portfolio lender that finances new construction rentals with as little as 5% down, with no PMI (private mortgage insurance) costs. It is creative financing options like this that have allowed us to expand our portfolio quickly in the BTR space, obtaining more properties with less capital down.
Now that the market is slowing down, many builders have a surplus of builds they began last year in anticipation the market would continue without slowing down. At the same time, rising interest rates have slowed down institutional buying in the BTR space nationwide. This unique combination of factors allows the individual investor the timely opportunity to purchase new-construction rentals below market value in some of the best markets throughout the U.S. If you know the right markets to look in, you’ll have access to inventory that wasn’t available a year ago when it was a red-hot seller’s market.
Many of these new construction properties are available with immediate equity and appreciate quickly if you are in the correct market. This allows you to be able to access equity quicker than you otherwise would during different…