Tri Level Townhomes Rice Military Analysis

[Louis Craig]

Has any one had much experience in these? I am playing around with a project, trying to decide if I want to go after it or not. I am looking at a piece of land large enough to put 4 tri level town homes on it.

The price seems high, especially for someone who is skimping on an agent (offered me 2k to "just put it in the MLS for him").

Land is roughly 7,700 sq ft. and it is a corner lot.

So on a rough analysis I would be looking at:

$115 per sq ft for building costs

13,400 total sq ft of buildings (to include garages)

$1,541,000.000 construction costs

$720,000 land sales price

Total = $2,261,000

Sales price per sq ft $200

Livable sq ft  $12,800

Gross profit = $2,560,000

Minus Expenses = $299,000

Now, I haven't dabbled into building from the ground up but I would love to hear what I am missing in my calculations. I know there is alot - the demo of the 900 sq ft house on the property and I am sure the city has hoops to jump through as well.

I'd love to hear feedback comments and concerns etc. Like I said, I know there is alot missing but before I spend hours and hours researching more I wanted to get an idea what y'all thought.

What is a typical return for multifamily properties? Even netting 100k I feel I would be happy - but I might be off on what my expectations are.

Is this price high for the land? I am not sure if the justification of you being able to build higher has anything to do for the tall price as well. When I asked him where he got the price from he simply said "appraisal." I have since asked him if he would be willing to furnish a copy and haven't heard a reply.

He kept telling me he isn't looking to list with an agent, repeatedly. I kept telling him thats fine because I wouldn't want to work with him anyway. Repeatedly. We really hit it off and had a swell conversation...

Any who, let me have it! Just be gentle....