All Forum Posts by: Jim Peterson

@Mike Morrell

Since Fort mill / Indian land area is doing so well right now, what are your thoughts on new construction? Specifically multi family units of 2 or 4 plex.

Hi Todd. 

I did pull together more numbers on this path.  What I found was I could get the 4 plex built, delivered, set, foundation, landscaping, water/sewer taps, electrical, etc... in place for approx $319k + the costs of the lot.  My problem was to make the numbers work with a $1k/mnth/unit I was needing to find a suitable lot for approx $50k or less.   My alternate direction was to look for bigger lots that could support more than one 4 plex.  I did find a location with 2.5 acres in a nice growth area that could work and support the higher number of doors/units.  What has delayed me moving forward is the larger overall project costs without having a partner/s. 

@Mike Wood

Thanks Mike for the heads up. I will definitely be checking on those safety regulations and codes.

I will keep everyone updated on the progress and path. My next step is to nail down additional costs to clean up some of my initial estimates and determining the finance solution.

Thanks again to everyone for the input and recommendations!

@Pedro Tavares

Thanks for all the feedback. One of the reasons I am looking towards new construction is that my pipeline is still limited and the items that typically hit MLS are pushing limits. My nature is to find alternative paths and in this case, I would like to make those numbers work for new units where I reduce the number of unexpected expenses and variables. I like creating opportunities rather than waiting for them. The road blocks I am running into are comparables to make sure the final refinancing numbers work, and an interim construction loan. I have half the project covered but am finding many companies do not want to get involved with a multiplex that is not owner occupied.

I tell you what though, these “issues” sure as heck beat sitting in the cubicle of my tech career.

@Geordy Rostad

Thanks Geordy for the reply.

I have actually found a suitable lot and was looking into modular as a way to minimize development time.

Your comment about keeping my money working for me does make a lot of sense. Do you believe it is better then to buy multiple single family properties?

Thanks again!

Hello Everyone.

I have been interested in buying and holding multi family units in my area but I am having trouble finding properties. As an alternative I am looking to build. Modular will be my choice of construction due to a number of factors. My longer term goal is to own larger multi, but for now I would like to focus on the 2 to 4 units per location and stay under the commercial radar.

My question is for those that own in this space would you prefer / recommend building a duplex with 2bd / 2 bath per unit, or a fourplex with 1bd / 1 bath per unit? The fourplex / quad will turn more cash, but is there a bigger downside other than a higher turnover?

Thanks for your comments and recommendations.

Jim

@Brian Mcmenaminy No I didn’t go through with that one but I am trying to pull together info now for another possibility.

@Paul Sofia Paul, it is great to find someone that has actually completed a modular project. Did you hit any snags in the process and did you hold the properties or sell?

@Jonathan Shanks, I agree with you Jonathan. From all my research Modular is the better product. Just wondering if you have built one yet? I am still investing details but anxious to start a project once everything comes together.

This is what I have been quoted about a year back when looking at an opportunity. Approx $50/sqft for construction of the unit. So approx $60/sqft delivered and set.