Hello All,i'm interested in the construction business and am shopping around to get $/sqft costs for new wood frame modern apartment buildings in mid class neighborhoods in LA county.I only have experience in rehabilitation As example i take a 8000 sqft, 10 units, 2bd / 1bath, 2 story apartment building, wood frame, modern design, built on a 7000sqft flat lot with available utilities, in a mid class area in Los Angeles.

Flips are really more another job than an investment since so much work is required for the rehabilitations. 

Low-income rental housing for which a depreciation deduction for rehabilitation expenses was allowed.Low-income rental housing held for occupancy by families or individuals eligible to receive subsidies under section 8 of the United States Housing Act of 1937, as amended, or under provisions of state or local laws that authorize similar subsidies for low-income families.

Here are the details I gather from the site: The Builders Line Program provides financing for small contractors or developers to construct or rehabilitate residential or commercial property that will be sold to a third party that is not known at the time construction/rehabilitation begins.

Care should be taken to include specifically all aspects of RE, buying, selling, leasing, contracting, demolition, rehabilitation, investing and management as at times, operating out side of your business purpose can lead to problems, legally and in accounting and tax matters.

Hey all,One of our company’s niches is acquiring vacant 2- to 20-unit properties for a significant discount, fully rehabilitating them, leasing them out, and selling them.

When done right, investors can purchase a distressed property for a relatively low cash investment, fix it up, and rent it out for strong cash flow.Building equity: One should also account for the amount of equity that is built up during the rehabilitation phase.

We are getting state and federal historic rehabilitation tax credits, and we accept the restrictions associated with doing a historic rehab.  

I’m estimating it’ll take 2M, not including cost to rehabilitate and start fresh operations.  

I heard that the properties that are sold are above the market price and that the rehabilitation/repairs the majority of the time is just cosmetic.