All Forum Posts by: Jared Bestebreur

I haven’t seen it added yet. :(

@David Crews

We bought a lot, and built a triplex on it.

1. New construction is awesome. Super easy to rent out.

2. It can take a long time, our project took 4 years from when we bought lot. A long time to ha e your capital locked up.

3. You need 20% down plus contingency.

4. Perfect for house hacking.

@Andres Zapata

Just make sure there are good comps in the area that support the build price. There are a lot less triplexes than duplexes, so it can be more difficult to get comps to justify the new build price. We had this challenge when we built our triplex.

@Jay Gordet

We have had similar challenges with our triplex.

When we had it built back in 2015, our first appraiser appraised it around $550k, we tried to contest the appraisal to no avail. We got a new lender, and a second appraiser and the appraisal came back around $575k. After calling the second appraiser and providing more details/information, we were able to get it readjusted to 600k so we could move forward with the project.

Last fall we started the refinance process, and the appraisal came back at $540k (🤯), we again tried to contest but didn’t get anywhere. We tried to get the bank to allow us to get a second appraisal but the bank wouldn’t have been able accept the new appraisal. We went to a second bank and got a new appraisal and it came back at $630k. (The property is realistically worth significantly more, but that’s a story for another day)

The takeaway, with multifamily properties since they rarely hit the market in smaller markets, appraisals can very significantly. It’s definitely worth the $500-800 to get a second appraisal.

@Chase Yokoyama

We built a triplex, and then moved in.

construction, house-hack and multi-family all at once.

@Adam Zach

Yep. Electrical engineer. The numbers just make sense :)

@Nicole Schertzer

We ended up building a triplex a couple years back. From start to finish my project took 3 years but we had some really unexpected setbacks with soil quality. And yet I still don’t regret it, and plan to do it again.

As to whether it makes sense for you or not, it really depends on your goals. We plan to buy and hold, so paying extra to know everything is brand new is worth it. If you are in it for the long run paying a little extra shouldn’t make much of a difference in 20 years. We are getting top of the market for rent, and always get tons of interest as well.

We paid about 125/sqft and now it’s probably closer to 135-140/sqft. Definitely, make sure you get the location right even if it costs more.

@Eric Schroeder

Looking at doing the same thing except using the equity for a new construction duplex. Good luck!

@Tj M.

Thanks for asking this question, I have been considering the same question.

I am going to refinance either anyway because of the rate drops.

For a buy and hold strategy it just seems simpler to just do the cash out now while rates are really low than having to deal with going through the heloc and refinance later. I am also leaning towards the cash out now because I am looking towards doing new milti-family construction, and I don’t really want the risk of a heloc for the year or so while the construction takes place.

@Tasia Turner

How tall are your ceilings to start with?

If they are 9ft tall then, it’s probably not a big deal, but if you have 8ft tall ceilings it is a no brainer. Also, if the space is smaller, the vaulted ceilings make it fell bigger, and you don’t want potential tenants thinking it feels small when they walk through the house.

We have them in our townhomes and they are awesome.