Built 2 duplexes or a single 4-plex?

[Mike Wood]

Looking for feedback on my next potential project.  In my area (New Orleans), property lots are narrow, and the neighborhoods were established before cars in most cases.   In the area that I am looking, the lots are 30ft wide, which makes it very difficult to provide off street parking (so on street parking is typical for the area) for anything but single family houses.

We have identified two lots next to each other and are currently pursuing purchasing them.  With these two lots, we could build one (1) duplex on each lot (two total duplex houses) or combine the lots and build one (1) fourplex on the combined lot.  We would be building similar sized units (~900 ft2, 2 bed, 1 bath per unit), but the primary difference would be the ability to provide offstreet parking for the fourplex, due lack of setbacks between the two lots.

My guess (based on my previous builds and discussions with my GC) is the my total construction costs would be similar between the two options. For what I might save on the actual structure of the fourplex, I would likely spend related to the offstreet parking.

I personally like duplexes as they feel more like a house than an apartment, where fourplexs feel a bit more like apartments. But most fourplexes around me are boring simple two story boxes that don't have any character and no outside amenities (something I would NOT replicate).

I am a long term build and hold investor, but being able to minimize my invested capital in the project is important to me. Either selection would have permanent financing at 75%LTV (to pay off the construction loan).

I'm interested in hearing feed back on this.