Whats the cost to build a 6-8 unit/2br2ba building?

[Jonathan Wildy]

I’m way out in a small town in Kansas but there is no new construction homes or apartments. I’m thinking of trying a 6-plex to see how a commercial development would go. Land would be inexpensive but I have no way of knowing expected construction costs for a medium B+ to A facility. I’d like it to be closer to luxury than a section 8 property. Thinking of making all 2BR / 2Ba but not sure. House rents are only 600-1400 and I don’t want to over lux it and not make anything. I can get 85% financing but I’m sure I need surveys, architects, builders, and so much I just don’t know. I have 7 sfr’s in town, a laundromat and loft space. Not looking to consider this until 2021, but I need perspective ;)

[Dan Weber]

1. Talk to a local real estate agent who can tell you what rentals are in the most demand in your area (1 bed vs 2 bed vs 3 bed) and what the rental income is for those units.

2. Talk to an Architect who can advise on new construction costs in your area. Also, use a local Architect who can explain the zoning to you so that you know what you need for land (parts of town that allow 8 unit buildings, minimum lot sq.ft., setbacks, frontage, etc...)

3. Take this land criteria and present it to your agent. They will be able to use this info to narrow down land for sale to show you. 

Between your agent and architect, you should be able to get good recommendations for attorneys, surveyors and builders that you can interview to fill out your team.