Buying New Construction Homes

New construction homes are a great way to profit from a small down payment. Some builders in Florida and elsewhere require a modest $1,500 down with no payments until the home is finished. A clever investor will have the house sold at that time and will capture a sizeable gain without ever having to pay on the monthly mortgage payment. Rent to own is another great exit strategy for the new home. By getting a tenant buyer in the house you can ride out one to two years additional appreciation gain while having the tenant buyer pay some or all of your monthly mortgage payment. One of the great benefits to understand about new construction is that your risk is limited to your earnest money, otherwise known as your down payment. If the project tanks you can usually walk away losing only your earnest money. Be sure and do your research on the market you choose to get the right town for growth. Then be sure and pick the most popular type of home that the buying public demands. It might be a two bedroom one bath condo or a four bedroom three bath three car garage house. Calling realtors off of realtor.com and asking what's the most popular type of home for their area will help you pick a winner. As long as you complete a detailed analysis for the market your chances of making a good profit is likely.