Building a 2 family in westchester NY vs buying an existing one. Cost effective?

[Roberto Rohann]

My goal is to owner occupy a 2 family house in Yonkers, NY. I would live in the property myself for ~3 years give or take and the goal would be once I move out to have the property fully rented and cash flowing.

 Ideally I would like a property with 2 3-bedroom apartments and an additional in law apartment . Prices on existing 2 families in this area range between 1-1.3M depending on the condition and neighborhood. Rents for each of the 3 bedroom apartments seem to be in the $3,000 range

I’ve gotten to thinking. With these high prices and competition for properties that are in great condition. How would the numbers look to buy a piece of land cash and pay a builder to build me a 2 family the way I want. I would be willing to put 20% down. 

would this typically result in a Lower final cost since the builder doesn’t have to put up any of the initial investment or carry the loan for the build ? 

also how would I go about finding vacant land for sale my city ? And how would I go about finding a reputable builder.  There’s many recently built 2 families in my area that I can use an example of what I would like. Has anyone here done something like this ? 

[Roberto Rohann]

Quote from @Mohammed Rahman:

Hey @Roberto Rohann - I think your post has a lot of what ifs and assumptions to consider. 

Assuming you're able to buy the land at a good price and find the right builder that would take on the project while also assisting with ensuring all permitting and paperwork goes smoothly with the county/town. 

If you're looking for a reputable builder you could simply walk into a new construction house/open-house and ask the agent to connect you with the builder - I'm sure they would love to bring a project to their client (the builder/seller). 

Building a new house on paper may be less costly (depending on finishing and etc.) but ultimately requires time and patience - which you may value differently than others. 

If you're still in the market for 2-fam homes in Yonkers let me know - I've brokered transactions there as well as have family based there too. 

 Thank you Mohammed, part of the reason for creating this post was to kind of highlight A lot of those what ifs. it has definitely made me think about the topics some more. Appreciate your response.