Build a Modular fourplex vs duplex

[Jim Peterson]

Hello Everyone.

I have been interested in buying and holding multi family units in my area but I am having trouble finding properties. As an alternative I am looking to build. Modular will be my choice of construction due to a number of factors. My longer term goal is to own larger multi, but for now I would like to focus on the 2 to 4 units per location and stay under the commercial radar.

My question is for those that own in this space would you prefer / recommend building a duplex with 2bd / 2 bath per unit, or a fourplex with 1bd / 1 bath per unit? The fourplex / quad will turn more cash, but is there a bigger downside other than a higher turnover?

Thanks for your comments and recommendations.

Jim

[Jim Peterson]

@Pedro Tavares

Thanks for all the feedback. One of the reasons I am looking towards new construction is that my pipeline is still limited and the items that typically hit MLS are pushing limits. My nature is to find alternative paths and in this case, I would like to make those numbers work for new units where I reduce the number of unexpected expenses and variables. I like creating opportunities rather than waiting for them. The road blocks I am running into are comparables to make sure the final refinancing numbers work, and an interim construction loan. I have half the project covered but am finding many companies do not want to get involved with a multiplex that is not owner occupied.

I tell you what though, these “issues” sure as heck beat sitting in the cubicle of my tech career.