A practical comparison of building versus buying your first rental property. Dave and Henry weigh the trade-offs: new construction offers fewer repairs and higher rents, but requires significant time and effort. They also discuss when older properties stop being worth renovating, Henry's lender-friendly renovation budgeting strategy for BRRR deals, whether wholesalers add value, and the ethics of hiding ownership from tenants.
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Editorial
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Building vs. Buying: The Trade-Off Between Time and Systems
New construction offers newer systems and fewer repairs, commanding higher rents, but requires significantly more time and effort than buying existing properties.
The Build Decade: When Older Rentals Stop Being Worth Renovating
Properties reach a point where renovation costs exceed value creation—Henry and Dave discuss identifying when an older rental crosses into 'too far gone' territory.
Wholesalers as Middlemen: When Their Assignment Fee Adds Value
Dave and Henry discuss whether wholesalers—who find deals and assign contracts to investors for a fee—are worth their markup or just extracting value from the transaction.