No one builds Small Multi, So I Build My Own!

[Tyron McDaniel]

In Houston and many large cities it’s quite difficult to find new or recently constructed small multi family units so we build our own!

This is a duplex where on unit will be rented to a long term tenant and the other will be rented via AirBNB.

[Mike Wood]

@Tyron McDaniel  I think that saying no one is doing it incorrect. I think more accurately, those of us who do build them rarely sell them. I have personally built five (5) duplexes houses in the last 5 years, and plan to build more. But none of them are for sale.  

Developers that build new with the intent to sell will always get more profit from selling a SFH over MFH, so why would they build MFH. Additionally, there are some very large cost disadvantages to building 3-4units now a days due to the differences in building codes from 1-2 unit and 3+ unit buildings.

I also think financing come into it.  It not super easy to walk into a bank and get a construction loan for MFH, especially if you don't plan on living there. It requires alot of capital to get the construction loan, not something everyone has.