Quote from @Jonathan Klemm:
Understood @Khalid Al-Amin...where in Chicago are you?
I guess my next question is, why Kansas City? Would you mind sharing some rough numbers for the deal? (Land and construction cost, expected sale price, etc.)
My last development in Chicago looked like this:
Land = $300k
Construction Cost $650k
Holding Cost/Closing Cost/etc. $50k
Profit roughly $100k
That project was in Bucktown on the nw side of Chicago.
No problem. I'm currently located in Kenwood/Hyde Park. I think there's a lot of potential when it comes to Kenwood/Bronzeville. Hyde Park is a little tough since there aren't many (if any) plots of vacant land or vacant homes there.
Why Kansas City? My family has a piece of land in KC. I wanted to make this my first project to get my hands dirty. I have almost half an acre plot of land located in a gentrifying/up-and-coming neighborhood. So we're doing a BTR construction project.
- Land: $0 since we've owned it for a number of years.
- We are working with a design-build architectural firm. He has suggested an 8-unit building.
- 10,000 sq/ft @ $215 sq/ft = around $2.15M
- Each unit will be worth around $268,750
The current plot of land is currently zoned for a duplex without further approval from the city/community, but the zoning on the land can allow for up to 8 units by applying for a Special Use Permit through the city. We have a high likelihood of getting approved by following the city's guidelines and seeing what it is that the city would like—getting the city's buy-in along with the community's buy-in shouldn't be a problem. There are several city programs that we are taking advantage of as well—tax credits, funding, etc.
We've already been in talks with city members and have a relationship with some as well.
