Hello Everyone,
I am relatively new in real estate investment/development and need some help with cost estimates. My boss and some other investors are interested in building a 50-55 unit apartment complex (4 floors); however, they are still trying to determine the construction costs. What would be a reasonable estimate per square foot to build a 50-unit 4-floor apartment complex in Orange County, CA? How long would the permits and construction take? After completion, what would be a good estimate for operating expenses as a ratio to the gross rent revenue? Also, are amortizing loans (around 25 years) common in construction loans? If yes, what would be a reasonable interest rate estimate in relation to the regular mortgage rates? I know these are a lot of questions, but I would be grateful if someone could give me some answers. Thank you!
