Build vs. Buy: Which Is Best for Your First Rental?

You don’t have to buy your first rental property—you can build one instead. Newer systems, fewer repairs, and that “brand new” feeling that tenants may pay more rent for. But…is it worth it? Building a small multifamily in a single-family area could let you house hack and own a rare property in your market, but is the headache worth the effort?With more and more investors choosing to build rather than buy, we thought we’d weigh in.Dave and Henry are back answering your questions from the BiggerPockets Forums. Today, we’re talking about building vs. buying rentals, when an investment property is too old to be worth buying, the lender-friendly rehab budget Henry uses to get loans for his BRRRRs (buy, rehab, rent, refinance, repeat) and house flips, and whether wholesalers (middlemen) are worth buying properties from.Plus, if you’re house hacking, should you tell the tenant you’re the owner? Dave tried to hide it before, and shares whether it was worth it. Dave (00:00): Would you ever buy a house built in the early 1900s? If you answered no, you might be overlooking the best deals in your market. In some areas of the country, most houses are old, especially the affordable ones investo...