Unti Land Costs for Multi-Fam Development

[Victor Zeytin]

Hi everybody,

I'm an entrepreneur that's been trying to get into multi-family real estate in SoCal for about a year now.

The opportunity has presented itself for me to get into a project that'll yield about 30 units with 4 low income in the SF Valley. We've been negotiating with the landlord for the past month and he's given us a deadline until tomorrow to commit. The land costs for the project is going to be $60k p/unit. I was wondering what this compares with other areas in SoCal. Is it a decent deal or not? I know things are all relative. Land costs on the west side of L.A. can easily be $100k or more but we're shooting for middle income families.

I'd love to get your opinions.