New construction multifamily deal

[Rylan Lacey]

Hi BP,

Just wanted to share a deal I’m doing in regards to new construction multifamily in South Phoenix

20 units, 2 bed 2 bath 800 sq ft

Stainless steel appliances

Stackable front loader washer/dryer

Bottom stories get backyards

Covered parking

$95,000 per unit to build ($1,900,000 total, includes all soft/hard costs except land and closing costs)

Land: $225,000

Rent: $1,250/month per unit ($300,000 annually)

Sale price $200,000 per door ($4,000,000 total)

Total profit after commissions: $1,820,000

Cap rate for buyer: 5.7%

Lined up for almost 80 units next year, just wanted to share one of the deals I put together, develop, and build. I’d love to hear the communities thoughts on a deal like this and if others are doing similar