Should you build your own duplex?

[Zigmunt Smigaj]

Looking at lots listed for 15-25k in Texas satellite towns to initially hold then eventually build class A/B duplexes.  Opposed to buying used one at retail.  Looking for some basic strategies and success/failure stories. Most of my properties are older (15-30 yrs) and maintenance is becoming a creeping problem.  I feel that if I build new I wont have a issue for 10 yrs and I wont need to compete with other investors.  

1. Can I 1031 into a new build?

2. Any particular layout that you recommend or would stay away from (2 story vs 1)

3. Will your costs be less than buying retail?

4. Do yo typically get a construction loan then need to refinance out ?

[Theresa Harris]

If you are building from scratch, see if you can buy a corner lot to build a duplex that has one driveway/garage on one street and the other on the other street-they look more like a large single family home until you go around the corner.  You can build in sound proofing, but honestly I'd go with 2-3 floors for each so you don't have the tenant downstairs complaining about the one upstairs walking around at night.

For costs-it could be more or less than new retail-depends on finishes of each. 

I'd start by talking to both a bank and a builder.

[Zigmunt Smigaj]

Thank you for the tips.  I’ll look for corner lots.