Resources for small residential development?

Question

I'm searching for what you might call "entry level" resources on building small homes to hold as rentals. I've been looking into this given the chronic housing shortages and tight investment options in many markets.

Any good books or other resources out there?

Payton Chung · Answer

A local foundation in Chattanooga published this handbook recently to encourage people to start small infill development there. Much of the focus is on 2-4 unit owner-occupied buildings, which can be financed with conforming residential mortgages rather than commercial mortgages. There's a lot in it that's applicable to other markets, though of course rents/costs and availability of appropriate land will vary.

https://9ff107f5-7cf0-429d-86ae-2d8b78844597.filesusr.com/ugd/036083_5f8e28d6b30b4e6ea946ee0b4ea70fab.pdf

Evan C. · Answer

All great points @Greg Dickerson! Conceptually very simple, yet clearly nuanced and detailed in the execution. Currently perusing the "Diary of a New Construction Project" that was posted elsewhere.

Greg Dickerson · Answer

Building for rent is a great model especially with inventory levels where they are now. First step is to understand values and costs. You need to make sure the financials will work. Start with ATV and income potential and work the numbers backwards from there.

Next you need to make sure to fully understand the zoning and permitting process, costs, timeframes and what is required from the standpoint of utilities, parking, lot coverage, setbacks, height etc.

The next step is to fully understand the costs of construction in your area. You want to talk to GC's that build the types of houses you want to build and get Turnkey pricing including site work, utilities, permits etc so you know your all in costs.