New Construction Multi-family in NC
I have older multi-family units that need consistent repairs / reserves for future repairs.
I'm looking to build small multi-family (duplexes) in the general Charlotte NC area. Land basis $25K or less. Construction costs $70/SF. All in cost: $200-$250K. 2 story (3 beds / 2 bathrooms per side)
Projected cash flow: $2,500/month.
Have you invested in Multi-family and/or considered building your own? What thoughts do you have (pros / cons)?
Most Popular Reply
Make sure you double and triple check your numbers. I only have indirect experience in new development but that was in greater Raleigh and a long time ago. If you can get all-in costs that work, then clearly this is an opportunity worth pursuing. In Wake county, development fees have exploded and, per a builder I talked to about two years ago, just getting permitted and utility taps can exceed $50K in Holly Springs.
Not sure if Charlotte is similar, but duplexes in Raleigh are rare and new construction of duplexes is rarer. See also Total Available Market - 2, 3, and 4 units for a discussion about the Raleigh market. The bottom line is that in Raleigh, the numbers don't work very well for me and many other cash-flow based investors. There are a handful of new build duplexes and the all-in $/sq.ft. are higher than what you have in Charlotte.
If someone can tag @Art Perkitny , he may have statistical insight into the Charlotte market.