Deal Analysis: Build a Triplex in Fresno from scratch

[Asim G.]

Hello,
I am looking for opportunities to invest in Real Estate in the Fresno area. I have an SFR and a 3'plex in the area that I bought in 2009 and 2011. SInce the market has changed and it is hard to find decent (b area) cash flowing properties, I am thinking of building small MF in the area. I just want to run some numbers in this forum and get some feedback to focus on due diligence to do.

Let us assume that I purchase this lot in Cash for $30,000

https://www.redfin.com/CA/Fresno/6979-N-Weber-Ave-...

And then build this triplex on the property

http://www.plansourceinc.com/J0605-14T.htm

Assuming cost to build of $75/sqft (including permits). The cost to build is $230,000. So the total cost to build/acquire the property is $260,000 (ignoring holding costs). I can collect money from my savings and family members to achieve this. Once complete, I plan to refi this 3'plex once the construction is complete.

Assuming each 900sqft 2/1 room will rent for $750/month. So the monthly rents will be $2250. Each property will have its own water meter, so the tenant is responsible for that.

So I end up acquiring a 260K triplex for $2250. Not a great deal by an means. But the property will be brand new with minimal maintenance costs for the first few years. 

Any thoughts on this plan. I am basing the $75/sqft building cost assumption on feedback from a realtor I have talked to. It seems a little low to me, and that is something I need to investigate. I am also not sure about the permit details, and the idea of having one water meter per dwelling.

I respect the opinion of folks on this forum, and would love to hear all feedback.