$2 million isn't what it used to be!

[Robert Nason]

I own a totally renovated eight unit building and I'm considering building a 20 unit in a vacant lot that I own right next-door. The problems are that while the neighborhood is rapidly up and coming with a brand-new courthouse, brand-new health center, brand-new art center, huge university presence , new bars and restaurants, there is still a level of transients in the area that make me Worried about a building there. But I figure I already own the property so I might as well capitalize on it and I can't find anything to purchase, so is it smart to build? My 8 unit loft building I've been at 100% occupancy since purchasing it only two years ago, I've increased rents from 7K a month to 12K per month. I'm north of Boston and I'm wondering how many units can I get with $2 million investment. Each unit would be approximately 800 ft.². I've been given per square foot cost anywhere from $90-$225, I would like to find a happy medium somewhere in there.