Ground Up Duplex House Hack Questions

[Todd Kelly]

Good Afternoon Everyone,

So, I am looking to finally house hack and build a simple 3,4 duplex near Concord, NH next spring. I'm currently going through a divorce, but it will be settled by then, and I should have some cash on hand. I'm trying to get all my information in now so that when I'm ready I can run. I've been looking at the market and it just doesn't make sense for me to buy anything currently standing and there are literally zero duplexes available in the towns I'm looking to stay in. How is the process with financing a new construction duplex? I know you can factor the rental income into the numbers but I'm not sure exactly how the bank looks at a that. There are zero vacancies in town, and it is a very highly desired school district, so I should have no issue bringing in $2200-2500 a month in rent in the rented unit. I'm looking to self GC the process. I am commercial construction superintendent running multi-million dollar jobs and spent over 10 years in the residential construction side as a carpenter, superintendent, and owner. Between my contacts in the industry and my ability to install some of the pricier items, (i.e. cabinets, siding) I'm hoping to drive the overall cost down. I'm still trying to decide whether to have plans drawn up by a draftsman or an architect. I'm looking for any and all information anyone can provide with a situation like this, thanks in advance!

[Tucker McCarthy]

I don't think the bank will allow you to count the "potential" income toward covering the debt (i.e. the unit you won't be living in). You'll have to cover the entire mortage with W-2 income.

Typically you will put down 20-25% on a new build, but as @Michele Wax mentioned above, sometimes if you own the land free and clear they will allow you to use that as collateral and finance the entire build for you.