Land & New Construction
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated over 2 years ago,
Building three Duplexes in the valley, on one taxlot.
My partners and I just broke ground on a 6 unit build. Its been about a year of red tape and other issues, but we finally got it off the ground!
I thought it would be fun to do a thread as we progress through the project and share what we are learning, as this is the biggest project we have done.
So far what we have learned is everything takes longer then expected. The engineering, both structural and civil took months to start due to a backlog of projects. The city approval added even more time. From the financing aspect, I was surprised how simple and easy getting a commercial loan as compared to a personal loan.
Here are some basic numbers. We have a build contract for 1.2 mil. We are financing for around 900k of that, and using cash for the rest. The appraised value upon completion is 1.8. We are building 3 bd 2.5bth units, that will rent for 2000-2200 a month. From a numbers standpoint, it looks really good.
Our current plan is to keep the project, and as such we have the ability to covert the loan over to a 10 over 30 commercial loan.
I will add to this post as the project progresses.
The first foundation is being set up, the contractor sent me this today.