More and more people are looking at brand-new homes for investment properties rather than resale homes that may need a lot of work. Some are choosing to live in one part of the home while renting out another unit. Other people are purchasing new homes with renters in mind. In either case, investing in a new property can bring in big profits because you won’t be wasting money on repairs and you’ll be able to command higher prices for the style you get with a brand new home.
We’ve found that the following home models are particularly popular with investors.
Front Attached Homes
Front attached homes are a nice option because they have the look and feel of a traditional home. Adding an income suite to the basement is a good choice for a family who wants a little income boost. For instance, the Sanctuary model is a three-bedroom home with a side entrance option, ideal for investors looking to build out a living room, bedroom, and full bathroom in the basement. People tend to choose this option when they want a family home with a separated space for an elderly family member who’s going to contribute to the monthly payment.
The Thomas model has some nice options for those who are thinking about renting to families or to groups of young adults who want a roommate situation. The second floor could be designed with four bedrooms and three bathrooms on the second floor. And the income suite, with separate side entrance, in the basement has a kitchen area and two separate bedrooms. Allowing young adults to share the space can make it more affordable for them and more profitable for you.
The Streetwise model is an exceptionally good choice. The basement suite has a separate entrance from the main home, while the main home has everything a family who wants to rent could be looking for. Since this model has a low starting price, investors can create a positive cash flow from day one. Rent provides a regular return from your property investments, which offsets your expenses and interest payments. Our ROI calculator is designed to examine the potential return you might receive from an investment property.
With the picture-perfect look, you’ll have tenants lining up to rent our Evans mode. The Evans floor plan with a bonus room has a very attractive layout for families and young professionals alike. The second-floor design has three bedrooms, and two of these bedrooms have walk-in closets. There’s a bonus room on this floor as well, which means extra hang out space. In the basement suite, you’ll find plenty of space for an additional renter.
For those who are really thinking about getting started with investing in income property, duplex homes could be the perfect choice. They tend to be more affordable than detached homes, so you can hit the ground running. It’s possible to purchase only one side of a duplex home, but many investors choose to purchase both sides. By turning the basements into income suites, you end up with four rental units. Best of all, many years down the road when it’s time to do something like replacing the roof, you don’t have to worry about coordinating with another homeowner.
The Sahara and Sequel models are the two halves of a duplex home model. Each offers three bedrooms in the main home - a great size for families looking to rent. The living areas are also open and stylish. For extra income, the basement suites are a good choice for young professionals who want to rent. They’ll have a bedroom, a bathroom, and a living space, along with a small kitchen area.
If you’re not interested in providing exterior maintenance like lawn mowing, it might be wise to invest in townhomes. These homes have starting prices below $279,000, and they appeal to families, young professionals, and retired couples. Consider buying multiple townhomes next to each other to make it easier for you to maintain your properties.
Our Milan and McLellan models both have well-planned designs. There are three bedrooms on the second floor and an open floor plan on the main floor. You’ll love that both of these homes come with a patio and balcony for hanging out. And when you choose to build in a popular community like Langdale, you’ll have no trouble renting these homes out.
It can be overwhelming to think about purchasing brand-new income properties. You might worry that the higher cost compared to resale homes will decrease your profits. However, modern designs really do command higher rental prices, so you can do quite well. Not sure which model is right for you? Come talk to an Area Manager about all of your options.