1st Time RE Development in Texas (RGV)

[Pete Torres]

First off, I would like to state that I welcome any comments and advice. This is my first go at investing in real estate, let alone development, and it seems to be everything from exciting to nerve wrecking.

I recently purchased a small lot in texas and would like to develop a small 4 unit apartment building. (2488 SF)

Cost of lot: 9K, of which I put down 3K, seller carried the rest with 2yrs no interest.

Currently the lot is zoned residential, so I am at the moment trying to get it rezoned. The lot is in a small town, but is part of a small metro area. The rents here go for about .65 per SF on average, for an avg. unit.

There is a 1 yr old 4 (1 bed rm.) unit bldg. one block away from the lot I purchased, each of the units rent for 600 (each unit = 618 SF) which is HIGH imo

Each unit in my proposed plan would be 1 bed rm. w/ about 622 SF where I would like to start rents at 450.

The est. cost of constructing is around 85K, bringing the total cost to 94k.

I have contacted a few banks and the best deal I could find was:

10% down, 20 yrs (My quesiton here is...will banks negotiate? Can I find a better deal?)