What would you pay for a new 4-plex?

[Jon Klaus]

in some areas, quality 2-4 family homes are in short supply and high demand. I've been thinking of building 4-plexes to meet this demand.

What would you pay for the following new 4-plex? 4 - 3/2s in a DFW edge city in a good school district. B area. 1125 SF each. 4500 SF total, plus one car garages. Hardie board siding, granite, stainless, vinyl plank, and tile. 9 foot ceilings. Monthly rent of $1100 each. Area has @ 95% occupancy. Property eligible for FHA financing.

How much would you pay?

This is not a solicitation for investment. I'm not there, yet. Just trying to gauge price/demand.

[Kurt K.]

I can't speak to your area. But I always look at the numbers on a buy and hold basis. I generally apply the 50% rule and look for 10 caps.

That being said a price of $264,000 (in my area) would make that building interesting, to me.

I'm not an appreciation investor per se, I'm looking to build a portfolio of 10 caps or better at purchase. If they appreciate that is nice, but isn't something I could/would count on, it's too speculative.

As an investor I don't put too much stock into it being "new and shiny". Income, expenses, and proper cap rate is what matters to me as an investor.