New Build Duplex, Johnston County

[Jeff Williams]

Asking from a General Contractor stand point…..is there a premium to be made selling brand new build Duplexes, in town limits of Johnston County NC? Specifically 3 bed, 2 bath, side by side units, two story with the town house look, with a single car garage. Given that there are recent townhomes that have been built and sold in the area, between 240K-265K, I am wondering if I were to build a duplex, if it should sell for 500,000 or more? (And BTW, half those townhomes have sold to investors.) I know that's not a real estate investment strategy, but I have been building to sell, since the market has been so good and I have available lots that will allow me to build a duplex. I have been building SFH, but since I have some lots that allow Duplexes, I figure that is the highest and best use of the property. And if I were to personally go out shopping for NEW duplexes, there is none to be found in my area. So I might have a niche. Want your feedback. (FYI, I am not building to hold these due to needing to raise more capital, and the market is so good right now)

[Chris Martin]

@Jeff Williams 

I would think the answer would depend on if you can find a buyer, just like your SFR, right? Given the scarcity factor, meaning there are not many of these properties in the available (existing) market, I would think you could find an audience. I routinely see people posting that they are looking for a duplex (or duplexes) in the Raleigh area. Unfortunately, there aren't many 2-4 family products in the region. I posted about this about three years ago in the BP topic: Total Available Market - 2, 3, and 4 units

Rant: I don't know why BiggerPockets deleted my graphs from the post (linked above) and most of my older posts. The graphs provide key insights that words just can't express. It's a shame that BP destroyed content that, IMO, was one of the most valuable pieces of the BiggerPockets Forums. That's a key reason I don't post much anymore.