Lot Property Brooklyn New York - build multi family homes

[Richard Holzhauer]

Hello everyone, 

Me and my partner have a 20ft by 120ft lot in Bensonhurst Brooklyn. The zone is z9. It was bought in 2012, for $275,000. The zoning says 6 units can be built on it. It is currently being rented out for parking spots. Any thoughts about building the units on the property. If so, how to start?

Thankyou

[Solon S.]

@Richard Holzhauer One of my close friends is an architect who designs plans for these types of projects. I'm working with him on a few projects and he breaks it down to a science. He works to maximize the plans as far as space while limiting costs. In Brooklyn, it'll cost about $200 per square foot for the spec build (give or take 10% as a margin of error) which is usually the going rate. If you're looking to build at 1,600 square feet per floor, the project will get you to approximately 960K+ (factor in permits that need to be pulled and designs which will take another 50-100K in NYC depending on who you use).  In the end of the day, it's going to be a million dollar project, where you will need at least $300K raised in order to get the construction loan. Definitely worth it if you have 6 brand new units in Bensonhurst, renting between $2,500-3,000, and generating 15-18K a month. You'll also own a property that will be worth $2.5-3M off the bat. Feel free to message me for more details.