Barndominium Multi-Family Startegy (Under $100/square foot WITH LAND INCLUDED!)

[Ben Hudman]

Hello! I am a 23 year old investor from Abilene, Texas and will be building barndominium multi-family quadplexes in my area. I am probably not the first to do it, but I do not see it wide spread. I am a contractor myself so my costs can be lower than most. However, I feel this will be a fantastic way for southern or rural investors as the barndominium look is becoming "in-style". It mixes lower building costs with the same appraisal values as normal construction (in my state/area at least). I am projecting an all-in cost of $1,150,000 for 2 quadplexes and 6 30x40 rental shops. Each unit will be 4 bedrooms and 2 bathrooms and 1,500 square feet for 12,000 square feet total. Each rental shop will be 1,200 square feet, insulated, have one water spigot, and minor electrical. I am expecting a cap rate valuation of between 7-8% or between 2.35M and 2.7M. What do y'all think of this strategy? Has anyone else done the same? We are currently constructing the metal building for phase one (quadplex #1).