Any Success With New Build Multis in Philadelphia?

[David Haynes]

I've been finding several RM1, CMX1, and CMX2 lots in the city of Philadelphia at low prices. I'm very familiar with turnkey multis, so there's half the battle. But I need to sharpen up on the intricacies of estimating new build costs. 

The cost of lumber has thrown off new construction costs recently, but I'm not sure by how much. Can anyone provide insight into this?

Also, how should you accurately estimate the construction costs? I know the basics... like multiplying the lot dimensions by 0.75 to calculate buildable square footage. But where do you get your numbers for price per square foot?

Has anyone attempted a new build around Philly? How did it turn out for you?

[Mayer M.]

@David Haynes

I don’t see how you’re finding these properties at low prices unless they’re in total spec areas. Inventory for multi family development sites are at an all time low and prices are at an all time high

Sure can you buy an RM1 triplex lot for $50k yes, but only In areas that are completely undeveloped and perhaps make a good land bank play

Even some spec areas are trading at $30k a unit for the land. Already developed and high demand b/c neighborhoods like sharswood/Brewerytown are trading for $60k a unit