25k lot build a 4plex?

[Jorge Leon Jr]

I am thinking of purchasing a $25k lot that i can fit for sure a small 4plex on in a city that is surrounded by heavy industrial plants

My plan is building a 4 plex with 1 room, 1 restroom, small living room, tiny kitchen, and tiny utility room roughly 775 sqft a piece

I know for a fact i can get contractors in here rented out paid water and trash @ 950$ a month (possibly more if weekly and if i do all utilities)

Why should i  OR should i not pull trigger

Roughly 25k for lot + 200-250k to build  = a 225-275k loan 

@ 15 years 

@ 5.59% 

275k loan 

25% down

1695 note payment

Lets say 400 taxes 400 insurance (over estimating)

2540 payment - 3800 rent = 1260 cash flow minus water and trash 

Basiclly 200-250 a door @ 15 years (trying to build equity fast)

Im doing 15 years cuz i know i can walk in to my favorite bank and they’ll Loan this out to me fast basicly pre approved

Never done this before but already getting bids on contractors and this is what they told me roughly building cost wise (im more experienced in SFR's)