Does building a Duplex or Triplex to house hack make sense?

[Javan Jackson]

Hello,

Just looking for advice on if this makes sense. I'm looking to buy an empty lot or old building that needs demolished to build a duplex or triplex to house hack. Based on the price per sqft a builder gave me a duplex would be $280k and Triplex $420K roughly. That doesn't include land cost which could be anywhere from 60K to 120K. Each unit should easily get $1300 in rent but keep in mind I would be living in one of the units. 

With an FHA loan I would easily be able to buy the land cash and have the down payment. It would be easier to buy an existing duplex or triplex but nobody is willing to sell because they cash flow so well.

Any thoughts are appreciated.

Thanks,

[Alecia Loveless]

@Javan Jackson I just can’t imagine where you could build a duplex for $280,000.

I think if you’re a new investor as the others have said this is not a good idea.

There are too many variables.

For instance I have a great contractor. He doesn’t do new construction. New construction where I am is out at least 2 years. And the better companies 3 years.

I would recommend existing construction. You will get more bang for your buck hands down.