Atlanta Townhouse Development

[David Robertson]

Hi guys, 

I'm an Architect in the Atlanta, GA area. I'm interested in buying up some land and developing townhomes on it. 

One potential option would be to develop multiple units and live in one of them. I assume that would allow me to get a lower downpayment on the loan? I'm not really interested in becoming a landlord, so I'd rather sell the units. This would be my first solo development, so I'd probably be just limited to a few units. My assumption is there's some economy in developing multiple units vs just one or two?

The only real estate experience I have is what I learn from developers that we work for. 

Any advice to whether this is a good idea or how to get it jump started? Does anyone have a similar proforma they would be willing to share? 

[Rick Baggenstoss]

@David Robertson  I think getting the pro forma together is a great idea.  Additionally, you should consider land prices as you know they vary greatly by neighborhood.  Pro Forma in Buckhead is going to look very different from the same in Chamblee. 

Separately, you should evaluate capital partners.  You're likely going to be able to get bank or favorable construction financing depending on your land cost.  Often the land is your stake in the game.