Construct a MultiFamily in Houston?

[Rakesh R.]

Hi Guys,

I have been looking to find an existing multifamily in Houston and most of them that I see are either low quality and very old structures or they are not in the areas where I am looking for.

I was looking for a good quality structure that was constructed after 1990 atleast and looking at neighbourhoods that have people with incomes in 70k-150k range.

Is it economical to construct one? I am expecting rents of about 1100$ per unit for 2 Bed 2 Bath(Four Plex).

How do I go about it? Are there construction companies that specialize in multi family?

Are floorplans available on BP?

Do I need to jump through lot of hoops(permissions) to construct?

Also, Houston as a whole is overpriced and waiting for a correction. Even one of the biggest fracking companies posted a loss for the first time and its stock price fell by more than 10% in last 10 days.  If this continues for 3 more months, lot of smaller companies would burn out.

Are construction companies aware of this and are they offering good deals? Or is it better to wait it out?