I closed on three identical lots next to each other last week, with each lot around 7,150 SqFt with 65 feet of frontage. Total 21,450 SqFt and 195 feet of frontage. I am in the process of replating the three lots with five lots and will be building five identical duplexes on each lot.

This is an already developed neighborhood, and there are a couple of duplexes and single-family developments around this neighborhood. It's a 1-minute drive from 288 and 610. 3 min to NRG. 5 min to Medical Center. 7 min to Downtown Houston.

I have already hired an experienced builder in the area who has built several duplexes, and we are going through all due diligence together.

My estimated total SqFt per duplex is 3,900 SqFt, and the estimated construction cost is $375,000.

The land cost per duplex is around $95,000. The holding cost is around $15,000 per duplex, so ALL-IN, I'm estimating around $485,000 per duplex, and the sales comparable in the neighborhood support a $620,000 sales price. If I pay a 3.0% commission to a Buyer Agent, I expect to net around $116,000 per duplex.

$116,000 x 5 duplex = $580,000 profit

Below are my questions:

1. At this early stage of construction, what are the things are should be aware of?

2. I know it depends on the complexity of the floor plan, but what is a reasonable or average price per square foot to pay a builder in the Houston Area?

3. What measures do you normally put in place in case you have to change a builder in the middle of construction?

4. What are your major sources of funding for your new constructions, especially small multifamily Duplex, Triple, and Quadruplex?

5. What other risks should I be prepared for?

If you are an Active and Passive Houston Real Estate investor, Home Builder, and Developer in Houston, I would like you to share your experience here. I would also like to connect with like-minded people.

I am an Active Real Estate Broker and Multifamily Investor in the Houston Area who has worked with over 400 New and Experience Investors since 2020, and I do have a decent amount of Rental Properties in the Houston Area as well.

I do have some experience, but not in construction and development, so I would really appreciate it if you could share your personal experience with me so that we can all learn from each other's experiences. Feel free to send me a direct message as well.

To the ones who build/have built spec homes and duplexes, I'd love to hear your stories and advice.

Thank you all

Below are sample pictures of the floor plan I'm building.