Can a new construction duplex be an good idea for househacking?

[Ron Dancy]

Hey All,

I have some opportunities for new construction duplexes and wanted to get some insight on investors or homeowners that has experience with this type of investment.

What have been some of your experiences?

Are you currently in the market for Duplexes?

Did you buy new or built ground-up?

How did you source the opportunity?

Your feedback is appreciate

[Ron Dancy]

@Benjamin Sulka Haha I'm not a novice but learning everyday. Looking to engage with the community.

Generally which funding partner will dictate your involvement. Some lenders would required 50% towards the project and there are some lenders I work with that would require 10% towards.

In this market climate (Houston Texas is the area I am working) some lenders want you to have skin the game and be at a certain point in the project before they fund the deal and then the lender will reimburse you. Construction and investing experience affects the terms as well.

Initially the startup cost would be; secure the land lot, get arch & structural plans completed, professional services ie survey, soil test, elevation certificate, RESCheck (Energy Compliance Report), building permit, Impact fees, Clear lot, Pour foundation and go into framing.

So you would need your own cash to get started. Probably 10% - 25% contribution.