Building a duplex worth it?

[Jennifer Mullen]

My husband and I are new to investing and are considering building a duplex and need some advise on whether this is a good deal or not. The land purchase price is 33k, total cost to construct including hook ups, excavation etc would end up being about 400k. Each unit would be 3 bed, 2.25 bath and 1600 sq feet. We estimate we could rent each unit for at least $1600/mo. based on comparables. Our total mortgage payment would be kept at $1600/mo or less given the cash amount we would put towards the deal. We plan to occupy one side temporarily, then move out and rent both sides. Does this seem like a good idea??

[Sean Kollee]

The land seems extraordinarily cheap and the construction relatively high. In a place where they are giving away multi family land I’d look harder at ways to get the construction cost lower. You’d really need to know what other similar builds have sold for.