Build out rentals?

[Shane B.]

I am considering a small development project.. I would prefer to keep them all if I build them myself (10-14 units) for rentals, but I am not sure the spreads would work out...

I am going to build small 1000 sq ft 2 bed, 2 bath units.. I believe I can keep my all in costs around 95k-100k per unit.

I would get a 20 year am commercial loan for everything. Including my HOA (covers roofs and exteriors), taxes, and additional insurance, I could rent them for around $250-$350 conservatively over my PITI + HOAs. After taking addition $ out for cap gains, and for my variable costs you would net a small amount per door. However, I am thinking about buying the lots cash, and financing just the builds to increase my spreads. My goal in RE has always been cash flow in order to become financially independent, and I have been able to build equity along the way. My current market is becoming impossible to find SFH deals on or off market with spreads within my target of building equity and rental profits - that is why I am considering doing this deal for small spreads, but having 10-14 units in one location. Also, I would build 25k-30k of equity per unit so I could always sell a couple of them in order to pay debt down..

Anyone have any thoughts on this deal? Thanks for any and all input.