Looking to develop Multi-Family in South Florida (East)

[Account Closed]

Hey guys,

I have no experience but after looking at all my options I have come to a conclusion that my best move is to buy land and develop multi-family apartment building (15-20 unit) 2 story somewhere between Miami Jupiter.

Budget for everything 3M

Done with cash + 6% line of credit

Looking for long term hold

I would love to hear any insight on what areas I should look at, ballpark of build price (hard costs and soft costs) and would love to network with anyone in the area on this.

Thanks

[Jordan Ray]

@Account Closed Happy to connect. What analysis did you do to come up with these areas?

I do commercial development in S. Florida. Feel free to PM me. 

[Branden Rivero]

didn't you make a post in the past about doing your first deal? a bit of a stretch to do that as a first deal

[Robert Ellis]

Quote from @Account Closed:

Hey guys,

I have no experience but after looking at all my options I have come to a conclusion that my best move is to buy land and develop multi-family apartment building (15-20 unit) 2 story somewhere between Miami Jupiter.

Budget for everything 3M

Done with cash + 6% line of credit

Looking for long term hold

I would love to hear any insight on what areas I should look at, ballpark of build price (hard costs and soft costs) and would love to network with anyone in the area on this.

Thanks

If you're looking to develop a 15-20 unit multifamily building with a $3M budget between Miami and Jupiter, there are a few key things to consider:

1. Land Budget: Aim to keep land costs around 10% of your total budget. For this project, that would mean targeting land in the $1.5 million range. It’s crucial to stay disciplined here, as overspending on land can limit the funds available for construction and other expenses.
2. Development Scale: I’d recommend avoiding developments in the range of 4-50 units unless you have a very specific reason. This range often lacks economies of scale and doesn’t attract institutional-level investors. Costs like engineering and permitting can become disproportionately high for mid-size projects.
3. Height and Density: Focus on areas where zoning allows for verticality and density. Look for properties on main corridors or sites with existing structures (e.g., small houses or retail buildings) that can be torn down and redeveloped.
4. Challenges in South Florida: Be mindful of market conditions and local regulations. South Florida is a competitive market, and you'll need to do your due diligence on zoning, parking requirements, and other restrictions.

I also made a quick video breaking this down in case you’re interested in hearing more details. Hope this helps!