New Construction 4plex Vs Purchasing 4plex

[Robert Trevino]

Hello Everyone, I am located in Killeen, Texas and planning my next investment. We currently own 1, 4 Plex and am  working on strategizing the purchase of the next one. I want to house hack the next 4plex with a conventional primary loan using 5% down. My other option that i am considering is doing a new construction on a 4plex. My question is.. does anyone have experience getting a conventional primary loan to build a 4plex and what if any experience can you share regarding the building of one. What can I expect when getting funding from a bank on something like this? Will they leverage the income potential like they would on An already built one?  Who can i speak to in the construction/builder space that could help me get an understanding of costs /planning for a new build.

Thank you 

[Alecia Loveless]

@Robert Trevino Right now in my market the cost to build is just so much greater than the cost of purchasing existing that unless you’re building a personal home no one is building.

I’d be sure to look at the cost per sq/ft analysis of what the difference is between new construction and what you will pay for an as built. You may find it just doesn’t make that much sense.