Small Multifamily New-Build Considerations in AZ

[Rudolph Wallstrom]

Hey everyone! First time poster and rookie here planning to jump from two to eight units. I am humbly seeking advice/constructive criticism ahead of my small multifam new-build project plan in mid-2022. 

For context: I've been active duty in the Marines for 8 years, still active until 2025. Bought my first home in Phoenix,AZ in August 2020 with my VA Loan, knowing nothing about real estate except "location, location, location." Since then, I have become obsessed with studying/executing REI and I continue to consume information with every bit of my free time. In 2021, I knocked doors selling solar as a side job while going to school and STR house-hacked my primary to buy a second home later in the year. I intend to escalate to the small multifam asset class as soon as it's feasible, and this brings me to my issue.

Current Situation: It's been almost 1.5 years in my primary and I'm sitting on ~155k in equity as of today. I initially wanted to put this equity to work via HELOC or cash-out refi, but I'll just skip to the part where I've decided that I will sell my primary FSBO directly through a title company. I plan to line up this closing date just after my 2yr mark in the property. Then, this will free up my VA loan and I may reuse it on a VA one-time-close contruction loan for a new-build quadplex. I will not touch home-sale profits for this, except to furnish the units for Airbnb/VRBO and FurnishedFinder use. The remaining money will be used for 20% down on a duplex or triplex new-build under my LLC, and also to pay off stupid decisions I made as a young, dumb Marine in my early 20s. I have no experience with lots and new-builds, so I am making this post to get ahead of any "unknown unknowns" that may bite me in the rear.

The key theme is that I'm open to comments, concerns, alternate suggestions and insights from those who have done something similar to my scenario. I do not need all questions answered, but below are some things I'm less familiar with:

-FSBO: experiences with title/escrow, real estate attorney, etc. Any unforeseen issues or costs? Key tips for success?

-Modular/prefab small multifam new-build: what key players do you absolutely HAVE to have, aside from a general contractor? Processes, timelines, additional considerations? Is it generally less/more beneficial to simply reach out to a multifamily builder, instead of focusing on ordering prefab/modular kits? Any favored prefab/modular builders I should be looking at for AZ?

-Lot-land new build: What additional costs need to be factored into deal analysis? Are there any rules of thumb regarding these costs? (Builder's fee, permitting, utility hookup, etc)

-Any valuable experiences relevant to my scenario that you wish you knew when you did something similar?

If you've gotten this far, I sincerely thank you for your time. I appreciate and look forward to any comments, questions, or suggestions!