Cost to build a Duplex

[John Mason Wallace]

I'm looking to start building "missing middle" housing in the Belmont neighborhood of Charlotte, NC. It's one of the few pockets of the inner neighborhoods that are affordable.... though, that's quickly changing. The lots are now going around 100,000K a lot.

A shotgun styled duplex might do the job, a little less than 900 per unit. I can get the architectural drawings for around 1500$.

The one issue is I'm having trouble getting an idea of what the costs for building a duplex are. I'm looking at around $110 per sf, though I'm hoping it could be a bit cheaper.

[Jonathan Taylor Smith]

I've been curious about the same in Raleigh / Durham, NC; however I've gotten figures from $90 to $125 per SF. Since the range was so wide and I'm not going to be doing it this year, I did not put in the effort to get a more precise figure.

But my point of concern with buying a lot and building my own duplex is how to make it cash flow on par with the units I purchase and rehab. I'd like rent of 1.5% of my all-in cost, so if each unit will rent for $900 * 2 = $1,800, then my all-in cost cannot exceed $120,000. And I cannot see getting the lot in a desirable location and new building for that price; yet I can could buy existing and rehab for that and less. Am I missing something?