Own 1 acre in Medium Density Zone - develop fourplex?

[Bryan Larcom]

Hi BiggerPockets,

I've recently come into a situation where I've acquired 1 acre of land in a Medium Density Residential Zone with a single family home on it. Speaking to the county, I can build 14 total units on the property. Here's my scenario that I'd be interested in feedback on.

Split the land into 4 quadrants, and build 3 fourplexes on each corner. (either separate deeds, or just plan to build 3 total fourplexes on 1 plot of land, 1 single deed)

The area that I've received the land is right off the main road in the city. Looking at the last 18 months of sales in MLS, there hasn't been a single property that has been sold with the zoning that my property has, and is rare to find in the city it is located in. I do not have the capital to build a multi unit apartment complex, which was my first thought, and would be nervous to invest all that I have into a single basket. I'm leaning towards building 3 separate fourplexes so that I can build 1 at a time. This would allow me to gradually build and not be in over my head. Each unit would bring in roughly ~$800.00 as of today's rents.

Considering the cost to construct a fourplex - unsure of numbers, perhaps 220k would be a fair estimate? advise if I'm way off here. Would this be a realistic and solid idea? The area is in Northern California if that matters

The other option is, I can sell the property as is (it currently has a house on it that cashflows about $400.00 a month) and then market it towards investors. 

I'm really torn on what to do here.