After doing the last project that included extensive extension, I realized that New construction was something that I was to pursue.

This is perfect for developers to tear-down and put a brand new construction home 4,000 sqft house which could sell around 2.4M. 

So by that "rule" you will have a lot to chew on.OR you could scan for well-constructed properties not in a flood zone and have a much smoother time.

So with another 100K in construction/fix up cost bringing the total to 500K it meets the 1% rule, obviously I would do more underwriting but I need to be solid on those comps. 

Otherwise you're looking at like a 8.99% 12-month bridge loan if you want to fund the construction piece too.

Construction Manager & Investor, DeveloperHi BiggerPockets community!

I’m in the process of searching for land in the Houston area to then build a 4-plex on it.The plan is to self-fund the purchase & construction, rent the units and cash out with a mortage.I like the idea of serving lower income families and therefore don’t shy away from section 8.This is the first time I do something like this, so I’m throwing it out there in hopes of hearing your thoughts and learning from your experience!

For appreciation, Columbus is your best bet.

This approach allowed me to secure the property quickly and provided the flexibility needed to cover the costs of resolving development issues and initiating plans for the duplex construction.

This approach allowed me to secure the property quickly and provided the flexibility needed to cover the costs of resolving development issues and initiating plans for the duplex construction.