Building Duplexes

[Brad A.]

Back Story So my wife and I are upcoming investors. :) We will be finishing the rehab on our first flip in the coming weeks and closing on the next deal in the next couple weeks as well. Additionally we built a home about 1.5 years ago, acted as the GC and poored some sweat equity into the build as well. To sum it up we refinanced a construction loan into a 30 year fixed and ended up with about 25% equity without bringing anything to the table.

Now the questions When I am considering deals for our buy and holds that we want to have some day I like seeing 40% equity after financing with 20%. If I can build a duplex and walk away with 25% I only have to make up the 15% to reach my goal of 40%.

15% is less then the 20% I would normally have to fork up. Also I wouldn't have to hunt/compete for a deal that I can get at 80% the ARV.

Is anyone else doing this?

Michigan, Grand Rapids, Kalamazoo