BiggerPockets Real Estate Podcast - BRRRR vs. New Construction: Which Makes More Money in 2026 (I Did the Math)
Episode Date: August 28, 2026Is it better to buy an existing property with value-add potential or a new construction home in 2026? For years, there was no debate. The ability to buy a property at a discount, add value through ...renovations, force appreciation, and recycle your money made the BRRRR method a no-brainer for most investors. But in 2026, things are a little different. Builders are sitting on inventory, which means new homes are being sold for less than we’ve seen in years. Not to mention, builders are giving buyers massive incentives like mortgage rate buydowns, closing credits, and even price reductions—just to get these properties off their books. But are these perks enough to make new construction a better option than the BRRRR strategy? Today, we’re going to put them head-to-head and find out. I’m comparing two real estate deals in the exact same market—a new construction home and a value-add property. We’ll crunch the numbers and see which strategy actually comes out on top from a cash flow and appreciation perspective. The answer may surprise you. In This Episode We Cover Three scenarios when you might prefer a new build to a fixer-upper A head-to-head comparison of two real estate deals in the same market How to negotiate huge builder incentives when buying a new home How to choose the right investing strategy for you in 2026 The biggest pros and cons of buying a new construction home And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1323. Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices
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Should you buy a fixer-upper as an investment property or a brand new house?
For years, we'd never even ask this question.
Buying a property, fixing it up to increase its value, and renting it out was the obvious choice.
But the market has changed, and renting out a newly built home is more appealing than it's ever
been before.
We're seeing dropping prices, mortgage rate buy-downs, and new properties don't come with
maintenance worries.
It is an outside-the-box option, but,
savvy investors are taking notice. But of course, renovations with the Burr method can still be one of
the most powerful scaling tools available to investors. So which one should you pick? At the end of the
day, it really just all comes down to the math. So today in the show, I'm going to analyze two deals
in the exact same market. One new construction, one Burr deal. And we're going to put them head to head
to see what's a better investment in 2026. New construction or value.
The answer might surprise.
Hey everyone, it's Dave.
Welcome to the Bigger Pockets podcast.
We got a fun show today.
I am really excited about it.
We're actually just going to compare two different types of investments and decide which is
the best one in 2026.
We're going to first look at a classic kind of investment, a value ad deal, kind of like
a burr, where you renovate an existing home, rent it out, build some equity.
It's a classic.
We're going to compare that to buying new construction, which may not be a strategy you've thought of before.
But I think as we go through this episode, you'll see that the pros and cons and the tradeoffs of each strategy really might surprise you.
If you had asked me before COVID, should I go out and buy new construction?
I would have said no in one second.
I wouldn't have even really thought about it.
As an investor myself, it never crossed my mind for at least the first 12.
years or so of my investing career, because buying a property that needed some repairs, even just
a cosmetic update, was just a no-brainer way to build equity in your portfolio. That was basically
the whole job of being the investor was doing the burr over and over and over again. But there are
things in the market going on right now that make it intriguing to buy new construction. And there
are four things you should know about why investors should consider new construction right now.
The first one is that builders are sitting on a ton of inventory that they've already built
and haven't sold yet.
All of this inventory means that builders are willing to cut deals because builders just have
a different business model than a home seller.
If a regular homeowner doesn't like their price, they might just choose not to sell.
But the way a builder's business model works is they have to move this inventory.
Otherwise, they're just paying for it indefinitely.
And that doesn't work for them.
And so they're offering all sorts of incentives to get these homes off their books.
These incentives come in the form of rate buy downs, which we're going to talk about a lot right now.
A lot of them are advertising 5.5% mortgage rates on their websites right now.
They're also doing seller concessions, which can reduce the cost of your closing cost, for example,
or you can negotiate better finishes in their home.
And sometimes they're even willing to drop the price.
The second thing is, and listen to this because it's kind of crazy, to go out and buy a newly built home right now is cheaper than buying an existing home on average across the United States.
There's actually an analysis that the National Association of Home Builders did, and they found that the median home price for a newly built home was $1,400 less than an existing home.
Now, $1,400 grand scheme of things, not that big of a deal, but this is not normal.
Usually, new construction to go out and buy a new home is a lot more expensive than going
out and buying the existing home.
But the opposite is true right now, which is exactly what makes this so interesting to look
out.
So those are two things that are sort of happening right now in 2026.
Then on top of that, there are some benefits that are always there.
A newly built home is going to have lower maintenance and repair costs, especially in early
years, which allows you to build up reserves and save up for your next purchase.
That's a great thing for your portfolio.
And then the second thing, that is not true in every situation, but in many situations,
new construction is going to have higher renter demand.
People will be attracted to a new home with modern amenities more than a dated home.
So that means, one, you may have lower vacancies, but two, you can probably charge higher rent.
So when you put all those things together, the fact that builders are willing to cut deals,
that new construction is cheaper than existing homes, the lower maintenance and repair costs,
and higher rent or demand, it makes it worth looking at.
For the first time, maybe at least as long as I've been an investor, but probably for many decades,
for the first time, it's actually worth looking at.
With that, let's jump into the analysis.
And for this analysis, we're going to look at two properties in the exact same market.
And I picked, not entirely randomly, Sherman, Texas.
Why Sherman?
I wanted a good area where I could find a solid deal for both kinds of investments.
New construction is not everywhere.
Builders tend to build sort of in pockets.
I went on Lenard.
They're one of the biggest home builders in the country.
They actually have an investor marketplace.
So I went on there, looked for deals that I like new construction for, and I found a deal in
Sherman, Texas that I like.
And I like Sherman because it's near Dallas, which is a very good investing market, some of the
best jobs, best population growth in the country.
And Sherman in particular, which is a suburb of Dallas or a small city outside Dallas,
in particular, has huge investments in chip manufacturing.
Texas Instruments actually is investing $60 billion into the area.
It's creating thousands of new high-paying jobs that leads to the needs for more work for housing.
So it's a good area.
It's also super affordable, which I really like.
It's about half the national average in terms of price.
So I genuinely like Sherman, and I was able to find what I think is a good bird deal and a good new construction deal.
So we can get a true test of which one's better.
All right.
So first up, I am going to analyze the new construction deal.
But we do have to take a quick break.
We'll be right back.
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Today we're doing a head-to-head between new construction and the Burr in Sherman, Texas.
I'm going to start my analysis by just running the numbers on the new construction.
So here's the deal I found.
It is from Lenar.
That's the builder.
They're one of the biggest builders in the country.
And they have this property listed for $243,000.
And it's in Sherman, Texas.
So if you look at it, it's a little bit outside Sherman.
but it's really not on the outskirts.
So I like that.
That is something you really do need to look for in new construction.
Sometimes they kind of build in the middle of nowhere,
and you definitely don't want that.
Now, I wish they had better pictures on the website, but they don't.
But, you know, you can go on their website and look at some of their stock homes.
It's pretty nice.
It is builder grade.
It's not super high-end finishes.
But it is going to be a pretty nice home.
Like if you walked into it, you'd say, this is a nice house.
It has all the amenities I was expecting.
Now, I did go onto the street here, and what I saw I was doing the street view is that
it's sort of, you know, it's not super developed over here.
It's going to be in a subdivision with a lot of similar homes, which we'll talk about
for rents in just a minute.
But some of the specs on this house, four bed to bath, great for almost anyone, for families.
It's 1,700 square feet.
So not huge for four bedrooms, but still a very nice size.
home. It's a one-story ranch, which is super convenient and appealing to a lot of people,
and it has a two-car garage, also a big selling point. All right. So now that we've combed through
the listing a little bit, I'm going to move over to the Bigger Pockets calculator. If you want to
follow along here, go to biggerpockets.com slash calculator and check out how to do great deal analysis
really quickly. So what I'm going to do here is just put in for now. I'm going to assume I'm
paying full asking price for this. So that was $243,000. So I'll
put that into the calculator. And they actually, one of the nice things about buying from a builder is
they've figured out a lot of the cost for you. And they put their own closing costs at $3,500.
So you know that's what you're going to be doing. You're not going to be rehabbing this property,
right? So there's no opportunity for value add in new construction. That is one of the cons or
the downsides to this is you can't build equity, right? There's nothing to fix on this property.
It's brand new. And so the analysis is actually pretty straightforward here.
because we know what we're buying it for, 243.
I'm going to assume that you're buying this as an investor and putting 25% down.
And on their website, you might have noticed that they were advertising 5.5% mortgage rates.
So they're saying that they're just telling you right off the bat, you don't even need to go out and negotiate this.
They're offering you right off the bat 5.5% interest rates.
Now, right now, as of today, when I'm recording this, mortgage rates are around 6.6.6.
for a primary. So for an investor, you're probably looking at something like 7%. And so that's very
significant savings having one and a half percentage points off your mortgage rates. Next, we're going
to put in rent. I did some comps at before this. And when I was looking at is around $2,000 is what
I think we can get. That's pretty good. If you're looking at the rent to price ratio, getting two grand
in rent for a property you're buying for $243,000 is pretty good. So I'm already thinking
property is going to cash flow. But we're in Texas. And this is where things start to hurt a little bit
is where you get your property taxes. Texas has one of the highest property tax rates in the entire
country at 2.2%. They don't have an income tax, so they got to get their tax somewhere. But that
means that for this property, even though you're just buying it for 243, the annual taxes are $5,346.
So that's going to take a bite out of your cash flow, but that's just what it is.
For insurance, actually, Lanar has scoped this out for us, and it's $1,280.
So those are our fixed costs, right?
We know our mortgage.
We know our taxes and we know our insurance.
That stuff's not going to change over the lifetime of our hold.
But now we move on to what are called variable costs.
So these are things like repairs and maintenance and capital expenditures.
Capital expenditures are similar to repairs and maintenance, but it's big ticket items.
It's like repairing a roof or adding a new unit or adding an HVAC system, air conditioning,
something like that.
It's treated differently by the IRS, so we separate them.
Now, this is where new construction really starts to shine.
For repairs and maintenance, a lot of times, they come with warranties for several years.
And there's really going to be, there should be no capital expenditures.
in my mind for eight years.
First thing you'll probably have to replace
as a water heater.
Hopefully that's eight to 10 years from now.
But your H-back should be good.
Your roof should be good for 20 to 30 years.
All of your electrical and plumbing,
none of that's going to have problems.
Siding shouldn't have any problems.
So you can put the numbers here
for your repairs, maintenance, capital expenditures,
which are really big things a lot lower.
Now, I'm not going to put them at zero.
And in fact, I'm going to keep my repairs
and maintenance at 3%.
and I'm going to put my capital expenditures at 2%.
So I'm going to keep total 5% in reserves.
Now, the reason I'm not making it zero,
even though it should be zero for several years,
is because I want to build up a cash reserve.
And sometimes things break.
Now, with a builder, when you're negotiating,
you should get that warranty, right?
And so you're doing no repairs and maintenance
for the first two years.
But I just want to put away some of my money
so that in your 5, 6, 6, 6, 7,
when I get to the point where I have to replace that water heater, I've put some money aside.
But hopefully you're not touching that cash reserve for a long time because these stuff is so new.
The one reason I do have repairs and maintenance is not because I expect something to break.
It's actually because they're a turnover cost.
Like if you have a tenant for two or three years and they move out, you're going to have to touch some stuff up.
So I like putting money away for that, even though I'm not going to have to really repair any big things.
because a warranty is not going to cover that.
So that's why I keep it at around 5%.
Vacancy, I'm going to put at 5% as well.
And then property management fees as an out-of-state investor,
I usually pay about 8%.
Now, that's it.
This is a single-family home.
So I'm not planning as the property owner to pay for utilities.
I'm going to just have my tenants sign up for electricity and gas, water, garbage,
all of that, right?
I don't have to think about that.
So I'm just going to hit finish analysis.
and let's see how this deal does.
All right.
So here's what we got.
For our property in Sherman, Texas,
just analyzing it the way I did it,
we had $53 a month in cash flow
for a 1% cash on cash return.
Not great, but that's a cash flowing rental property
that's going to have very little work.
But if this were me,
if there's no value-out opportunity,
a 1% cash on cash return is not,
good enough. But luckily, this is not how we have to buy this deal. Remember, when I did this
analysis, I just put in things as they were asking for, right? They were asking for 243. There's all that
inventory on the market. Remember, this is the time to negotiate. And so there are a couple of things
I would try and do if I were going out to buy this property. When you go to negotiate for new
construction, you need to keep in mind, again, the business model of the builders.
In this area where this home is, they're probably building dozens, if not hundreds of homes.
And so when you go out and negotiate, think about what the builder is thinking.
They want to, almost at all costs, maintain their comps.
Because if they offer you 5% off this home and sell to you for 220, now that is a comp that
everyone else is going to see.
So every other home they go and sell potentially dozens of.
or hundreds of more homes are going to be comped against that lower price.
Texas, where we're buying this, this is a non-disclosure state, but in most states,
other people are going to see that.
The point here, though, is that builders are going to try and preserve the purchase price
more than anything else.
So, even though you should try and negotiate price, and you can usually get it down a little
bit, but they're going to be more stubborn on that, what you want to really try and do is get
other types of seller concessions. And the things I would focus on are, one, a rate buy down,
and two, getting rid of all of your closing costs, that can lower your expenses, right?
But then on top of that, you can maybe negotiate for a longer warranty to control your repair
cost, right? Or better upgrades, like nicer appliances or something in the unit.
Now, as an investor, I would actually go in that order of priority for me, personally.
I'd want to get my rate down first, then I'd try and get rid of the closing costs, then I'd
try and get the longer warranty, and then I go for the nicer fixtures. So they are advertising on their
website a five and a half percent mortgage rate. I actually bet you can probably negotiate a three point
buy down right now. I bet you can get it to about four and a half percent. That's like a two and a half
point buy down. So now I'm going to go in and just assume I can get a four and a half percent
interest rate and I can negotiate this down. And I'm going to put my closing cost at zero,
because I'm going to assume they're willing to give up 3,500 bucks.
So if I do that, that saves me 3,500 bucks.
And that gets our cash on cash return up to 3.25.
So honestly, I think this is pretty good.
In most markets, you just can't find a 3% cash on cash return deal.
You just can't.
If you want to go out and buy a quote, unquote, turnkey property where everything's done
and you don't have to work and you could just kind of set it and forget it,
this is a pretty good deal.
You're in a good area that is likely going to appreciate long term.
You're getting a 10% annualized growth rate, which is about the stock market or better.
And you're getting tax advantage cash flow at the same time.
Now, this is a pretty good deal, in my opinion.
Now, is it as good as Burr?
We're going to look at that.
But I think for some investors, this works.
But at the same time, I would still try and negotiate down the price a little bit, right?
I'd like to get it to a 4 or 5% cash on cash return.
That beats bonds.
That beats most dividend stocks.
So I think if I can get this for like 235, that gets you to a 4% cash on cash return.
$200 a month in cash flow.
That's a good deal in today's market.
So this is why I'm talking about new construction right now.
Everyone says you can't find cash flow and cash flow is dead.
But this is cash flow for a newly built property in a good area, right?
the difference is this rate buy down, getting that 4.5% mortgage rate instead of a 7% mortgage rate
goes from most deals on the MLS that do not cash flow to a deal that does cash flow that's going to have a
warranty that's going to have high demand that's in a good area. This is why we're talking about
new construction right now because this is actually a good thing worthy of consideration for a lot of
investors. But is it as good as the burr? We're going to get to that analysis right after this break.
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Welcome back to the Bigger Pockets podcast. I'm Dave Meyer. We're doing our analysis head-to-head
between new construction and the burr. Before the break, I analyzed a new construction deal and found
that we could get somewhere between a 3 and 4% cash-on-cash return for a newly built home
in a good area. That is pretty compelling. It's not the sexiest cash-on-cash-return on
earth, but in a good neighborhood for a newly built home, that is a pretty darn good deal.
So we got to compare that now and see if the burr can do better.
So for our analysis, I was just poking around on Zillow looking for a deal.
And I found in Sherman, Texas, in a good neighborhood, I actually think this is a slightly
better neighborhood.
It's closer to sort of the walkable downtown of Sherman, Texas.
And I found it for $160,000.
And the reason I picked this is, one, I think there's opportunity for a value add.
It's a good burr candidate.
And it's very, very similar to new construction.
So I really wanted to compare apples to apples.
This property is four-bed, three-bath.
So our new construction was four-two.
So this actually has a third bathroom.
But it's about the same size.
It's 1,700 square feet.
This property, only a one-car garage versus our new construction, a 2-car garage.
So these are important things when you're comping things out.
But obviously, we're not going to find two exact same properties.
So I think these are pretty darn close.
This property was built in 1961, which I like, really like homes built in the 60s and 70s,
and it's on a very nice size lot of 8,000 square feet.
We can look at the pictures here.
It's a nice ranch style home.
It looks like it's in pretty good shape.
You can see at least in the living room, there are hardwood floors that can definitely stay.
Those look pretty nice.
I'm looking at the ceiling here.
It's popcorn ceiling, so we're probably going to have to scrape that.
kitchen definitely needs to be renovated. It's definitely, it might be original cabinets in there.
Some of it's been upgraded, but we're going to have to scrap that kitchen and start fresh there.
Man, there's different kinds of floors in every single room in this house. So we're probably going to need some new flooring.
It's definitely going to need paint. Oh, this bathroom's nice. So one of the bathrooms has been
upgraded. So that, that'll help save us some money. The second bathroom definitely needs to be upgraded.
It's not terrible, but it can use some work.
And the third bathroom needs some work.
Backyards, not awful.
There's some weird pergola thing.
But we're going to need to put some work into the landscaping here.
So overall, I was looking a little bit into expenses of the area.
My estimate is that we're going to put in $30,000 into this project.
So not crazy.
I actually analyzed it.
It came to about $25,000.
But, you know, I'm just looking at Zillow right now.
I don't know if there's something lurking in the walls here.
So I'm going to throw an extra $5,000 into the budget.
Because realistically, having done this a lot, there's probably something wrong here that I am not seeing.
So I'm going to put another $5,000 in here.
Now, the other reason I like this is because of the comps.
Now, Texas makes comping hard because they are a nondisclosure state, which means that they don't post what things sold for recently, which is a bummer.
But I was just looking around at other listings, similar listings in the area.
And I found this one here for 285.
This is a super similar home.
This is a 4-2 for 1,700 square feet.
So this is very similar, and it's right around the corner.
Now, we don't know if it will sell for this price,
but I am guessing, let's just knock it down,
that it's going to sell instead of for 285.
Let's say it's going to sell for 275.
But this looks like what I would try and get this property to.
It has nice floors, fresh paint,
a builder, sort of renter-grade kitchen,
but it's solid, right?
It's a solid spot.
On top of that, I also found another one that was actually for 320.
This is a little bit bigger home.
It's about 2,000 square feet, but it's also a 4-2.
It's in a little better shape, but it's not super modern.
So I would peg this one.
Maybe it will sell at 300.
So I'm going to put my ARV, my after repair value for this property that we're going to burr at 270,
275.
Let's just call it 270.
We're going to be conservative on this.
But we can buy this property at 160 and we're putting $30,000 into it.
So I'm already liking what this property is going to look like.
But to really tell, we're going to have to go to the calculator and run the numbers.
All right.
So we're going to do our analysis here.
We're going to put in our property address and then go to our purchase price, which is 160,000.
Purchase closing costs are going to be, let's call it $4,500.
It's going to be probably a little more expensive than going with the bill.
although they usually pay for some of those expenses.
And ideally, like we talked about in our negotiation,
you're playing zero closing costs for new construction.
So the thing you got to do here when you're doing a value ad is click this tab,
if you're watching on YouTube,
click this tab on the Bigger Pockets calculator and go and put in the after repair value.
I'm going to be conservative here.
Let's just call it 260, just in case we're low.
And we're going to put the repair values.
I said 30,000.
Let's just call it 35,000.
I'm just going to be extra conservative on this deal.
because I don't know that much about it.
Next, we're going to move onto our down payment,
which I'm going to put as 25%, because we're investors,
and our interest rate's going to be 7%.
That's going to be a really big,
probably the biggest difference between new construction and birth.
And so 7% between 4.5%, that's going to eat into your cash flow a little bit.
But on this property, I think we could probably get similar rents.
I think it's actually maybe a little bit higher because of the location.
Let's call it 2050 instead of 2000.
just because of the location.
It's in a more mature neighborhood.
For expenses, our taxes, man, it's $4,800, super expensive here.
Insurance, $1,200.
Repairs and maintenance.
I'm going to put 5% repairs and maintenance.
I'm going to put 8% for our capital expenditures, just because it's an older home.
Things are going to come up.
Vacancy at 5%, management fees at 8%.
And then for our other variable costs, I'm not touching them.
Because, again, I'm going to just have tenant payer, right?
they're going to pay electricity, gas, all that.
So with that, let's finish our analysis.
What we get here, pretty darn good deal.
Wow.
So this deal right here would come out right off the bat,
$218 dollars a month in cash flow for 3.3% cash on cash return.
So right here, even without negotiating,
we're getting about the same cash on cash return,
pretty darn close to new construction.
So this is actually, you know,
I just did this analysis for the first time,
but this is actually a really good head-to-head comparison.
But the thing I want you to think about here is it's not just about cash on cash return.
We have this other metric here on the Bigger Pockets calculator that you should look at,
which is your compound annual growth rate.
This is how quickly you're benefiting from all the things that you benefit in real estate
because it's not cash flow.
It's appreciation, cash flow, amortization, tax benefits.
And if you remember back to the new construction, that was growing about 10%.
But with the Burr deal, it's 17%.
And it's not because of the cash flow.
It's because you invested $35,000 to drive up the value of this property by nearly $100,000.
That is the reward you get for going out and doing the work, taking on the risk, taking on the time commitment to go out and do the burn.
You get a very similar cash on cash return, but your equity,
is growing so much faster in the burr.
And that obviously helps if you want to stare at your net worth,
but that's not why most of us are in it.
Most people are looking to scale their portfolio.
And by building that equity,
that means you can refinance out of this,
take it and go do another deal.
Now, when you refinance it,
you should know that your cash on cash return is going to go down, right?
You're going to be taking out a bigger loan.
And so your cash on cash return is going to go close.
to break even. But that's a decision that you get to make. That's the beauty of building
equity is you get to decide, do I want to hold on to this property that has good equity and get
a higher cash on cash return? Or do I take a property that's still going to be breaking even or
better? It's not going to have great cash flow. But I can take my money out and go do this exact
same deal again so I can scale up and build our portfolio. This is what's so great about
the burr. So which one is better though, right? As you can see, both have their pros and cons.
New construction is better because it's less work. It's far more predictable and you're going to have
a lot less headaches. And actually, a new construction deal will probably have better cash flow than a
burr after you do your refinance on that burr. So there's a lot to like about that new construction.
But the burr is better for scaling, right?
If you want to build equity and you really place a lot of value on recycling your capital so you can keep using the same money to acquire more and more and more properties, the burr is better.
So here's personally how I would think about it.
If you are early in your investing career and you want to acquire more units, I would go with the burr still.
There's just the value of recycling your capital with the birth strategy just like really can't be replicated anywhere else.
The opportunity to build equity is so valuable early in your career if you're not starting with a lot of capital.
So for me, if I were in that circumstances, I was early in trying to scale up, I would probably still do this bird deal.
In other circumstances, though, I would do new construction.
And I think there's sort of like three buckets of investors that this makes sense for.
The first is you already have a lot of money. Good for you. If you got a lot of money,
I would just go out and buy these deals, right? It's going to be less headache. You can buy them
pretty easily. You're not going to have to scour for tons of deals. It'll probably work really
well for you. The second is if you work full time and you have a longer time horizon.
If you're comfortable building financial freedom, building your portfolio over the next 15, 20 years,
I would do new construction, right? That property is going to still be in good shape,
15 years from now. And that's really, really valuable. And if you're just like, I have a high
enough income, I can put enough money away, or I can still buy a new construction deal like this
for $240,000 every two to three years, that's pretty good. You're not going to have a lot of problems.
And it's going to be pretty darn sure. Like, that's a lot of predictability about your portfolio.
So if you're willing to take 15-ish years to do this, man, that is pretty compelling.
Burr, like I said, if you want to scale aggressively, build up your portfolio, 7, 8, 10 years to financial freedom, that's what I was saying with the Burr.
But there's also a third bucket, I guess, of people who I would consider new construction for.
And as those are people in their harvest phase.
I've talked about this before.
I've stolen this framework from Chad, Chad Carson.
But he says there's a starting phase, a scaling phase, and a harvest phase.
Like I said, if you're scaling, I think Burr makes a lot of sense.
But if you're on the point where you've built a lot of equity in your portfolio and you want to sell off some properties and maybe just make the management of your total portfolio easier, new construction is pretty compelling, right?
You can go out and earn a cash on cash return of three and three and a half percent right now.
It's going to grow to five, six, seven percent in the next couple of years.
And I mean, that's pretty good to retire off of, right?
Like if you could do that now and start harvesting, you're just going to have low maintenance deals that just produce more and more cash flow every year.
that's also pretty compelling.
So for new construction, I'd say people in their harvest phase, people who already have a lot
of cash, or people who are working full time and want to take 15-ish years, new construction
can absolutely be the right option for you.
So I hope this analysis is helpful for you when you're trying to decide what your next deal
should be.
I just think this is a really interesting question.
And I actually thought of this question in episode because I saw information about
about new construction in the Bigger Pockets newsletter, which was just relaunched.
It's awesome.
It is called The Investor Brief.
And it is just chock full of information that help you get a leg up on your investing.
Like a lot of people wouldn't know to look at new construction.
But Bigger Pockets is putting out news like this three times a week.
That's the Bigger Pockets investor brief.
You can sign up at biggerpockets.com slash newsletter.
That's our show for today. Thank you all so much for watching The Bigger Pockets podcast. I'm Dave Meyer. I'll see you next time.