I think it can be profitable for seasoned real estate investors who have both the time and expertise to make sure their rehab project stays on budget, but I definitely wouldn’t recommend biting off more you can chew and doing BRRRR for your first deal.

Quote from @Account Closed: Hey guys,I have no experience but after looking at all my options I have come to a conclusion that my best move is to buy land and develop multi-family apartment building (15-20 unit) 2 story somewhere between Miami Jupiter.Budget for everything 3MDone with cash + 6% line of creditLooking for long term holdI would love to hear any insight on what areas I should look at, ballpark of build price (hard costs and soft costs) and would love to network with anyone in the area on this.ThanksIf you're looking to develop a 15-20 unit multifamily building with a $3M budget between Miami and Jupiter, there are a few key things to consider:Land Budget: Aim to keep land costs around 10% of your total budget.

If 10x20 units are budgeted for less than $130 then not an A location.  

I have to budget for other expenses (repairs, maintenance, etc.) out of pocket.We are coming from Seattle which is a more expensive market and we have the cash to be able to do this, but I hear your pain - when you are starting out, that might not be a good idea.  

Risky part with pulling the equity out to use on a BRRR is what if the BRRR goes over budget, doesn't appraise, etc.

I can tell you this , a rehab will take longer than you plan , and it will be over budget .

Both work, but it depends on what you are trying to accomplish and your budget.

- For those who build in phases, how do you structure budgets and plan cash flow to cover extended construction timelines?

Most residential real estate developers have a certain operating expense margin they are budgeting for in order to make sure they are hitting their return requirements.

Just depends on your buy [box] and budget.