Rental Analysis Data?

Question

I'm doing some diligence on a property that has an existing duplex, but I can build a small apartment complex on the same lot. Does anyone have some really good websites for accurate up to date data for vacancy rates, median rents, average household income, etc? Ideally broken down to the city at bare minimum, but even neighborhoods or zip codes would be even better.

Zach Matson · Answer

Haha, true. There's probably room for more anyway. I'm okay with having it out there for people that want to take advantage of my expertise in infill development that may want to partner however. =)

Zach Matson · Answer

Not exactly. Sorry, I wasn't really following where you were going. So, if someone hires me to build something for them...I charge around that price. That would be what I would profit on a build job, then the interest and closing costs and such would be paid by the person hiring me. If this were my deal the sale price on a triplex would likely be around $900k, so if I bought the land for $150k, and my build costs were about $500k, I would expect my interest and carrying costs to be about 10-12% of the total of that, so lets say $75k, for all in expenses of about $725k. The deals that I am doing right now though, I am basically getting the land for free, and building on, refinancing all the cash out at the end, and keeping the rental for basically no money into it.

Zach Matson · Answer

Hey Jaycee, yes, I'm doing new builds in Boise and surrounding area. I am comparing the cost of a new build based on what it will cost me to build it, for my analysis. For a finished value I can pull data from the MLS, for both existing and new. Most lots inside Boise city limits now you can build at least a duplex on with the new zoning code. I actually currently have 3 lots that we are building duplexes or triplexes on at least. To buy a lot outright its usually around $150k or so, depending on area of town. And the size of the duplex and bed/baths depends on the size of lot, location, and what we best feel would rent best and all the other factors. My build cost psf for my own projects is around $135-$145, and I charge people between $190-225 psf.

Zach Matson · Answer

Great, thank you! I'll check it out! I did find some good data on city-data.com that I had forgotten about. And a PM friend of mine pointed me towards NARPM. But your info is helpful, I'll check that out! Thank you!

Zach Matson · Answer

Sure, would love to connect.

Jaycee Greene · Answer

Per your message, do you mind if I send you a connection request/direct message?

Jaycee Greene · Answer

Good for you! You may want to keep this on the "down low"...or more developers/builders might move to Boise! :-)

Jaycee Greene · Answer

Awesome, @Zach Matson. If I did my math correctly, on a 3,600 SF triplex where you buy the land for $150k, you generate a gross profit of about $84k (based on a $140/sf build cost and sale price of $205/sf), before you pay interest on any borrowed funds or closing/commission costs. Is that in the ballpark?

Jaycee Greene · Answer

Hey @Zach Matson! Are you looking to do new builds in Boise or another market? How are you comparing the cost of a new build to one with an existing duplex? How big of a lot is required and how much would it cost to purchase? What would the size of the duplex be, 2,500 SF? What would be your build cost per SF? How many bedrooms would there be, 2?

Bill Le · Answer

I'll check out City-Data. Best of luck.