Advice needed. Scaling up or continuing with what you know.

[Bin Chen]

Hi everyone,

I am fairly comfortable with small 2-4 family multi fam houses but I would love to scale up. I am considering a development deal but am not entirely sure how to approach it. Any advise would be appreciated.

The deal:
A lot 50'*100' in NYC with a buildable SF of 11,000 not including the cellar and deductions. 

From that we can get about 14 2BR units 780ish sf which rent for about $2400 each and 7 parking spots for around $250 a month.

Total income $404,950

Now I need to do some more research about the property tax. I looked for a similar property to check what the property taxes are like and they're only paying 2.5k a year because of a tax deduction

 Does anyone know where I can find property tax numbers without the reductions?

The land would cost about 1.3m

the construction rough estimate I was told $250 a sf. So 11,000 sf+ 2500 sf cellar *250 = 3.375m + pavement and yard work let's just say 3.5m

I estimate 2 years for plan approvals and construction.

does that seem right? Anyone have experience with this?

Now for funding I can sell a property for 1.3m and 1031 exchange it for the lane to avoid cap gains.

I have another property that I can sell for 2.1 m - 300k I still owe on it to fund part of the construction but I would need to take a loan for the rest. Also I would need to find a way to get a loan to finish the project. Are construction loans high rate? I wouldn't be able to defer taxes for selling the house to use for construction right?

i would be losing the 2 properties (7 units) about 150k noi and still need to get a 1.7m loan.

is something like this even worth it?

On the other hand I have another option right now to buy a 2 family for 1m 20% down cash flow 700 a month after expenses. Good location and will likely appreciate. I know for a fact I'll make money here. 

Any advice, input, even pointing me in a direction to do more research would be appreciated.

thank you in advance