Thinking of building a duplex from scratch, any advice?

[Account Closed]

Thinking of applying the BRRRR method to buying a lot in downtown Bakersfield where there was once a house but now it's just land. Anyone have an idea of new construction cost per square foot in Bakersfield? Plan would be to be to purchase the land below market price and build a duplex. Average rent for a 2 bed 1 bath place is around $750 for the area.

[Teri Feeney Styers]

@Account Closed I have created multi-family for flipping. Here is how you need to do your math: Find out what a duplex the size you want will sell for locally. That is your big number. Now subtract 20%. That is your required equity (for a bank loan). Now subtract land cost and utilities tap fees. The amount left over is what you can spend for construction and carry costs. Does that number work? Shop it to a couple of GCs. The other math is: if you have a bank loan for 80% of the value will rents cover that payment and other landlord expenses and still put money in your pocket every month?