How Do You Build A Four-Plex

Question

I really want to build a four plex and I'm looking to hear people's experiences and recommendations. I have some rentals and have done some rehabs, and work full time in commercial construction management, so I know this is what I want to do. I love some suggestions or links to the path to learn more.

Jennifer Beadles · Answer

@Julie Marquez In the past I've hired a builder on a flat rate to build whatever it was I wanted, and that's worked really well. I have a two duplex new construction project that I'm running personally and its really simple if you know the business. Biggest challenge is finding subcontractors right now as everyone is so busy.

The permitting side may be challenging if you've never done that before.

About building fourplexes: most all municipalities consider them to be commercial, yet some consider duplexes as residential which do not have as many requirements. So I personally prefer to build two duplexes next to each other as opposed to one fourplex. If you're going to have to go commercial then I'd do more units than a fourplex if the zoning allows.

Every project is so specific and every municipality is different so its a little hard to suggest a path to learn more, though I am more than happy to help if you have any specific questions.

Hope this helps!

Mike Wood · Answer

@Julie Marquez I believe what @Jennifer Beadles is trying to say is that anything over 2 units is a different set of codes (rules) to build to.  1-2 family houses use the International Residential Code (IRC) in most states, and residential and mixed use buildings with more than 2 units use the International Building Code (IBC).  It would still be residential.  The IRC has less requirements, and thus a bit easier to build. For example, 1-2 family homes are not required to have a sprinkler system in the IRC where anything with 3 or more units needs a sprinkler system in the IBC.  There are other differences also, so you would need a decent architect and/or engineer on board.

Financing should be the same as a duplex, at least that is what I have been told by my bank.  I have not built anything more than duplexes, but are toying with the idea of my first fourplex.  Good luck.

Robert Ellis · Answer

Triplexes in our market are not required to have sprinkler systems. Depends on which building code the local jurisdiction has developed but 1000% not required in Columbus to have a sprinkler system.

Robert Ellis · Answer

yes you can but you need a use variance or talk to the zoning department about future use overlays or if there is a process. put the effort in and you'll find the answers. developers call the same people you can call.

Robert Ellis · Answer

I build triplexes ground up for investors right now. We target the land first and do a few calls to explain the process, the value driver for us is that we build 20% below appraised value by what I designed it's a dense floorplan with high returns for investors that creates $100k+ equity for an investor on 500k. We build for a discounted rate on a retainer based model. I make what I can make and that's it. We are now entering markets where the triplex is worth $620k (Tampa, FL) and $717k by my analysis (Miami, FL) and overlapped equity creation with interest. That's how we do it. I control the process start to finish. I know every subcontractor, I priced every material, I facilitate it start to finish on weekly calls. We already have the first few in contract to break ground on. A four unit is no different. I developed a 3 story suburban walk up product though because that is what most large development firms design and the highest profit type of construction and most stable right now. Suburban three story walk up style apartments are my guess at least 60% of multifamily large scale projects. The rest are podium style / urban and then BTR is about 5%. We do this in Columbus OH right now.

Julie Marquez · Answer

@Robert Ellis Thanks for the reply on my 7 year old post. I now know how to build as we have built two duplexes for ourselves. We are very small scale but we have the knowledge to be the general contractor and work with the cities. It helped that I worked as an estimator for a local residential custom home builder for a while. Those 4 units are the best rentals in our portfolio and we continue to slowly build in our market. Being a developer/builder is a role that I have come to enjoy. Your business model sounds awesome, and it sounds like you've really found a niche that benefits a lot of investors in some great markets.

Robert Ellis · Answer

I sent you a message to chat further to see what part of Florida you are in. I'll be in Florida for 30 days from mid march to mid April and I'm already collaborating on a few. If you have the land already we may be able to assist. Most of my experience is in Tampa and Orlando from my national construction period and that's why we are starting there.

Findley Defranc · Answer

I am looking into the development space and would like to know how it turned out for you? I am interested in know if land is zoned for a duplex can I also place a Four plex on that lot.

Findley Defranc · Answer

@Robert Ellis thanks Rob I appreciate the quick response...I will make some calls and talk to my architect

Findley Defranc · Answer

@Robert Ellis wow Rob! That's amazing...there are parts in florida that need more of these...I am located in the area would love to work with you to partner up get these done!!

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