Teardowns, new builds, rehab costs

[Jourdan Mercer]

I'm trying to get some realistic numbers on what it would cost to build a new triplex or fourplex in central Massachusetts.

I'm thinking about different strategies to create and build my investment portfolio.  One of them is to buy tear down properties, get it all approved by the town and build a new tri-plex or quadplex in it's place.

I know there's a lot of variables that go into it and not all properties are the same and I need to take certain steps for each property.

I have remodeled residential homes most of my life and done and seen all aspects of remodeling.  I am a licensed builder and I'm trying to shift my career path and get into investing and utilize my license to operate my own business.  I've always worked for someone else and have never really dealt with the money side of things.  I have the knowledge and experience to do the work, but I'm lacking in the finance knowledge aspect and trying to educate myself before I take any big steps so I don't bite off more than I can chew.

Has anyone found an average cost/sq.ft. that their buildings cost them to build?

I would like to buy and hold properties.  

Average size unit that I would like to build would be a 3 bedroom, 2 bath.  I know most places seem to be 1 bath, but if I could do 2 that would make the place more desirable.  Approximately 1,200 sq. ft. / unit

Tri-Plex:  9 bedrooms, 6 baths, 3,600 sq. ft.

Quad-Plex:  12 bedrooms, 8 baths, 4,800 sq. ft. 

ARV: My estimations are about $650,000 - 700,000 for a tri-plex and a quad-plex would be about $700,000 & up

Biggest costs I can see are the obvious purchase price, demolition costs with all the dumpsters, foundation fixing or new foundation depending on the age and condition, Framing, siding/ext. trim, plumbing.

I'm trying to see if this is worth going this route.  I know a building like this can easily cost upto $600,000 to build if you're not savvy or putting top notch finishes everywhere and subbing every little thing out.  I'm looking to make my places nice without being over the top or breaking the bank.  I can also do some of the work myself and would like to do some of it as long as it makes sense for me to do so.

Any thoughts or suggestions would be greatly appreciated