What would you do?

[Chris T]

ok, here's the deal, in jan. i signed a contract to start building a house for myself, i put 5k deposit down and it's going to be done being built about aug. i have since decided i don't want the house for myself and i wanted to get something bigger in a different city. i've found a resell home and i'm buying it for myself to live in (first home) i close may 2nd. basically i have 3 options on the house that's in constuction...
the home is 1580 sq ft, tile, flat top range, wall oven/microwave in brick, neutral colors, screen lanai 3/2 nice master bath. i went under contract @ $174k


1) let it go, lose $5k (last resort)
2) attempt to presell home and assign contract, it would probably sell for about 185K+/-
3) Close on the house and rent it out, i would most likely break even with the mortage so there would not be any + cash flow from the property.

i'm in central, fl one of the hottest markets right now, i'm thinking that last option is the best and would be the smartest, since i did get pre-construction pricing, i could rent it for 3-4 years and make a decent dime on it.

[aak5454]

renters are very hard on houses. Thus even over a few years you will have significant wear and tear.  Moreover,if they are continuing to build new units nearby yours, it could be more difficult to sell.  Since you indicated yoiu will only be cash break even, you are banking on appreciation only get a return.  The wear&tear (or worse) could signifcantly deminished that return.