Building a small multifamily in Statesville NC..construction cost

Building a small multifamily in Statesville NC..construction cost

Developer · Palm Harbor, FL · Member since 2015 · 307 posts · 96 votes

We have a 4 unit building in Statesville, NC and own the ajecent lot that's about the same size.  I'm trying to figure out if it's feasible.

I'd like to build a 4-6 unit building (assuming the city approves) each with 2 bed, 1 bathroom and small kitchens. 

Does anyone local have a rough price per sqft to assume for average construction with low end finishes?

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  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    10y

    Build a 4 unit since you or your buyer can get financing easier, now or down the road. The first person/people I'd talk to are licensed contractors since they could give you a ballpark figure. The second (actually maybe the first) discussion would be with Iredell county permits office. They have good knowledge and some counties (e.g. Onslow and others) have unofficial 'good' and 'bad' lists of contractors that they deal with. Just ask the right questions and they tend to be helpful.

  • Developer · Palm Harbor, FL · Member since 2015 · 307 posts · 96 votes
    10y

    Good point on the financing with 4 or less units. The county said 2-4 units were no problem but 6 would require additional approvals. Do you know any contractors in that area?

  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    10y

    I don't, but the county office will. You can also get the information by yourself from permits submitted in 2016... but that will take some work. Best to just ask the permits office clerk who should know.

  • Rental Property Investor · New York, NY · Member since 2016 · 33 posts · 4 votes
    7y

    @Adam Anderson hi, Adam, I am wondering if you actually moved forward with building the units?

  • Developer · Palm Harbor, FL · Member since 2015 · 307 posts · 96 votes
    7y

    We did not....yet. I found the cost to be to high to make sense especially since we would need a GC to mange it (we directly manage our local construction projects)

  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    7y
    Originally posted by @Adam Anderson:

    We did not....yet. I found the cost to be to high to make sense especially since we would need a GC to mange it (we directly manage our local construction projects)

    This is a very common problem throughout the Carolinas and the southeast US. It's not a problem with the concept of building a 2-4 unit property, the issue is all about the large capitalized expense costs vs. benefits. The GCs and builders would rather play at the subdivision level than a single property/parcel. The best time for doing infills (unless they are the big $ tear downs of $1M homes to put in a $2M home) coincides with an overall slowdown, but that doesn't appear imminent anywhere anytime soon. 

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