Thoughts on new construction multi-family (townhouse style)

[Greg Clatterbuck]

I have several options for construction of a Phase II project with townhouse style units.  The existing (Phase I) consists of 7 townhouse units, 2bd, 2.5 bath.  The property has 7 additional pad sites with water and sewer connections existing.  I want the new construction to be 3 bd for increased rent value.  The difficulty is fitting 3 bedrooms into the available space.  I am marketing the property as Luxury and therefore don't want tiny bedrooms in order to add the third, but can make it work.  Another option is a wider unit, but would reduce the number of units to 6 vs 7.  The larger units would also have an attached garage. I anticipate the garage to add $50-75 monthly rent and increase marketability.  

Constructing the additional unit will mathematically generate more income in the long run, but I am concerned the smaller bedrooms could be a negative when marketing as luxury.  No other complexes in the area are marketed as luxury.