Building Versus Buying

[Justin Puetz]

Hey everyone!

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I'm curious, has anyone went through the process of pricing out/building a new multifamily build? If so, what conclusions did you come to? Was there a certain unit count you needed to hit to make it profitable? Are you a builder or an investor? I have so many questions so any information would be greatly appreciated!

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I'm a contractor up in Minnesota and have always wondered how I could build my own investment properties. I've got connections in the building community with subs, suppliers, etc., plus I have my own labor force to be able to build the structure, which would obviously help keep the costs of building down. Right now with lumber so high, I doubt the numbers would work out but I'm looking towards the future to see if it's something others have done and is worth pursuing further. I've read up on the subject and have seen plenty of people brush off the idea of building, which I can understand if you are not in the world of building/contracting. However, I'm more looking for builders or contractors who have either tried to figure this out or have actually built the structures and seen the project though, whether you were successful or not. I'd love to learn more about what you learned and any suggestions you may have for it, anything from how you bought materials, to how you saved on your design and layout, etc. I have so many questions and am looking forward to connecting with you!

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Thank you so much for reading! Have a great day!

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Justin

[Aaron Owen]

Justin,

I am currently working through a new build deal with one of my family members in SW MN. The property that makes the most since when looking at the numbers is for the property to be 2-4 units. We choose to build a duplex due to the smaller lot size. However, my suggestion would be to speak with a local RE agent and see what the price and supply/demand are for certain bedrooms and bathrooms. I'd use that info to roughly plan out how many bedrooms/baths you can get into the property that would make sense based on the lot size and your budget. 

We choose to go down this path because we are in a similar position as you are. We can get interior/exterior finishes at discount due to myself being a PM and my family members owning and/or working as a contractor/design business.

Let me know if you want to chat sometime. 

Thanks,

Aaron