Unique Strategy For My First Multi-Family Construction Project: Seeking Guidance

[Garrett Wright]

Hey BiggerPockets community!

I'm embarking on my first multi-family construction project in Washington County, Utah, and would greatly appreciate your expertise and insights. My strategy at this moment: 

Buy land with a 5% down conventional loan that will allow the construction of an all adobe brick four-plex. Use our construction business to fund the entire construction. During the construction, I know I'll need to pay mortgage on the land without making any money from it yet but I should be able to manage and hurry to build this and have it rent ready before the cold season this year. Once completed, get it appraised and a loan to pay back our business and have the added equity to also pay the down payment for the construction. At this time I'll also rent 3 of the units and live in one as a primary residence. 

Advantages in this deal:

We can build for less than half the cost of your typical framed construction, because of the cost efficiency of adobe. A lot of the labor will be done by me to save on cost, but we have a very efficient team that will make construction smooth sailing. I have close connections in plumbing and electrical as well.

Added details:

This will be the very start of my journey into real estate and to our business of adobe construction. Not only will this four-plex get me extra income, it will show that adobe is real and an even better way to build a home. There is not many adobe homes being build today and my goal is to change that. Adobe is something that can only be used when temperatures are above freezing so I'd like to have the extra income to support taking the winter off for other ventures.

Any added advice and related knowledge will be greatly appreciated! Thanks!