All Forum Posts by: Eyal I.

@Rosmery Then

My partner and I are in the same situation, just he has 20 years of construction and development experience. We just acquired an existing duplex in Fort Lauderdale and planning on tearing it down and build a new duplex instead. The process is pretty straight forward and not complicated at all. I can share some of it with you and help guiding you through the process. 

First thing I'd look is the zoning for that property to ensure ADU/multifamily is even possible. You can also schedule a meeting with the building and planning dept in Fort Lauderdale. They are very nice and can be helpful providing you what you can and cannot build on your property (Set back, height restrictions, front look etc). A good designer and architect are key for a successful project like this and keep in mind these aren't cheap.

There's a lot more details to consider, feel free to DM me for more details. Would love to help!

I work with a Dallas based bank that can lend nationwide. They will need to get out the contractor etc. Pm me if you need more info. 

Hello group

Anyone has any experience with new construction in Parkland and the surrounding area? Specifically, I'd like to know the permitting process (time/cost) for SFR and cost to build per SQFT (I am aware it varies). Also, recommendation for builders and related trades would be appreciated.

Thanks,

Thank you all for your answers. Very helpful information. A few follow up questions:

1. What type of expenses does the lender require in their analysis? Is it just PITI (There's no HOA for these properties) or also vacancy, repairs, property management and so on. If yes, what are the acceptable rates for these. For example, I included 8% vacancy in my expense calculations - is that necessary and if yes - is 8% reasonable?

2. Occupancy: Since these properties are at the final stage of construction, there are currently no tenants. Will the lender just use FMV for rent? or will they require a lease agreement first?

3. My 2 duplexes are under a series LLC (Me being the single member). Each duplex under a different LLC.

4. Cost: what is a reasonable origination fees / pre-payment penalty? What is the ongoing interest rate should I expect? 

Thanks,

@Alex Bekeza - 

No HOA fees.

Assumed Property tax to be around $50k a year (It is far less right now due to being under construction).  

Insurance/repairs was about $5k. 

Vacancy at 8%

MGMT at 8%

Prices above are combined for all units

@Jay Hurst - Thank you. I sent you a private message to connect.

@Randall Alan

Correct, but with current interest rates, I will most likely be upside down meaning paying out of pocket to cover the loan. TX has high property tax which reduces the NOI significantly.

Hello

I am about to complete the construction of 2 new duplexes in the DFW area with a $1.5M construction loan. Latest appraisal for the 4 units came back at $750k per unit or $3M total and my estimate for renting it is about $5k per unit.
My original plan was to flip but given the market I am more likely to hold the properties and rent them out .
As much as I'd love cashflow it, it isn't my primary goal. I was wondering if anyone had recent experience with loans for brand new duplexes (DSCR concepts etc) and can recommend a creative lender. I can also pay off some of that loan to reduce the debt, but would really prefer to spend that additional cash on new acquisitions.

Thank you! 

Hello

Anyone can recommend a Texas based real estate focused CPA? I am looking for someone who truly understands the real estate world and can also serve as an advisor. Specifically, someone who understands opportunity zone, 1031, subject to financing etc.

Thank you.