All Forum Posts by: Ryan Cleary

Thanks Bradley, This was the input I needed the most.  Glad I was able to speak to someone in the area.  That was my one major concern with investing in that particular neighborhood, its definitely the lowest class neighborhood I would ever invest in.  Thanks, now time to focus my energy elsewhere haha 

When speaking to an architect today, he told me to factor in spending $250 a sqft for a new duplex in West Palm Beach, Florida.  

Does this seem too high?  I know contractors has more then enough work coming their way right now.  

Would it be smart to hold off and try and wait for things to calm down?  I have no time frame for this project.

 Hey David,

This was probably one of the most informative responses I have received on Bigger Pockets and I appreciate it very much!  I need to check out Impresa now!

Quick question though.  I don't know anything about modular construction.  Is it something that will last forever?  or does it not have the same lifespan as normal construction.  Thanks again!

@Stone Jin

Thanks! You’re right I probably should get better numbers for construction

Have had this duplex for less then one year. Paid 220k with a current cash flow of around 10%. The surrounding properties are all 4-units (most of them are two separate du-plex on the same property if you notice the picture). We have enough land to add another 2 units and parking spaces. The land is zoned appropriately. We would be using hard money or a construction loan and try to refi after 6 months.

I just spoke with an architect and found out the construction costs are going to be around $250 per sqft. So these would be the numbers.

325k for construction

13k permits and misc

20k for architect (guessing on that number)

So lets call it $360,000 in total to build the two extra units.

Monthly rents for those two units would be around $1,400 each ($2,800 in total)

Is this even worth looking into? Thanks!

Have had this duplex for less then one year. Paid 220k with a current cash flow of around 10%. The surrounding properties are all 4-units (most of them are two separate du-plex on the same property if you notice the picture).  We have enough land to add another 2 units and parking spaces.  The land is zoned appropriately.  We would be using hard money or a construction loan and try to refi after 6 months.  

I just spoke with an architect and found out the construction costs are going to be around $250 per sqft.  So these would be the numbers.

325k for construction

13k permits and misc

20k for architect (guessing on that  number)

So lets call it $360,000 in total to build the two extra units.

Monthly rents for those two units would be around $1,400 each ($2,800 in total)

Is this even worth looking into?  Thanks!

Thanks for your reply Kerry! So I spoke with an architect and he said to factor in around $250 per sqft for construction alone.  If I am building two units for a total of 1,300 sqft then that comes to 325k (plus all the other fees).  I purchased the whole property less then a year ago for 220k. Something tells me now is not the right time to try this construction especially since I would be receiving around $1,400 in rent per unit.  Do you agree?

Cross Country Mortgage was great!

@Eric Bilderback

Never dropped below 100%

I currently own a long distance rental property in Riviera Beach, FL, the current cash-flow is amazing. The property is currently a duplex. There is more then enough land to add the exact same structure already contained on the property plus parking. So this would change the duplex into a 4-unit. The property is zoned for up to 4 units and is surrounded by other 4 units.

Does this sound like a good idea to try and build an additional dwelling? Should I work on building a portfolio of more properties instead of spending money on construction? This is probably a stupid question but is it possible to use hard money for the construction and then refi after tenants are in?

(The existing structure is literally a concrete bunker. Single story Concrete bricks with a flat roof. It seems like it would be on the more affordable side)