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Deciding whether to purchase an investment property.

My brother and I newer to real estate investing and are under contract for a new duplex being built in tennessee in a smaller tow, about 100k. The town is not far from nashville which has seen a huge real estate boom. The duplex is expected to be completed and closed on by the end of april. We will then try to rent both sides out. The property is in a class B neighborhood which has seen a lot of investors lately, but not a lot of new builds such as ours. The units will be of similar size to the surrounding homes and the rents would be about $200 more, but we have some wiggle room to go down.

My brother and I are contemplating if we follow through with this purchase since we only have ernest money in the deal and have the option to back out. We have some time to decide before moving forth with our loan to see what the markets do. I believe we might see an influx of people looking for more affordable rental options from Nashville in the coming months but cant be certain. My brother believes we are purchasing at the peak market and the property will depreciate in value and rents not long after closing and will take years to recover and get back to the value that we are purchasing it for. There is no wiggle room in the purchase price.

We are very interested to hear an insight and suggestions you might have. Thank you!

submitted by /u/Cxj401
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source https://www.reddit.com/r/RealEstate/comments/frr0je/deciding_whether_to_purchase_an_investment/
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