Buying Model Homes
Are model homes a good investment buy?
I'm currently looking to purchase one in Surpirse, Arizona with a 2 year lease. The purchase price is $264k and they are going to lease for $2300 per month for the next 2 years. They are also giving me $7,500 cash at closing.
The community is still in Trailer Phase. Is this a good investment?
My first thought is that this is a good deal...but it's hard to say without a few more details. Who is going to lease it? The construction company? Do you have to pay for any repairs? How much are taxes? If it's going to be used as a model for the next three years then you might plan on replacing carpet/floors and repainting...or maybe they could do that as part of the lease agreement
Typically model homes include upgrades that you don't need for rental properties. My rentals normally have minimal upgrade.