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A Wave of Zoning Law Changes Could Have Huge Impacts for Investors and Housing—Here’s What You Need to Know
The U.S. is facing a housing deficit of about 3.2 million units, and the situation is especially dire in urban areas like New York. It’s one of the reasons prospective homebuyers are finding […]
Do You Think It’s a Tough Time to Invest? It’s Not When You Can Get Deals Like This
Are you sitting on the sidelines in this market? Many investors are. There’s a lot of fear and caution. But we’re not. And you don’t need to be, either.  Of […]
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Multi-Family and Apartment Investing
HomeForumsMulti-Family and Apartment InvestingEconomics of Multi Family New Construction
Larry Flanagan's profile image
Larry Flanagan's profile image
Larry Flanagan
  • Investor
  • from Midwest, USA
  • Member since May 31, 2012
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Larry Flanagan's profile image
Larry Flanagan's profile image
Larry Flanagan
  • Investor
  • from Midwest, USA
  • Member since May 31, 2012
Connect
Larry Flanagan
  • Investor
  • Midwest, USA
33
Votes |
204
Posts
Multi-Family and Apartment Investing

Economics of Multi Family New Construction

Larry Flanagan
  • Investor
  • Midwest, USA
Posted Apr 6 2015, 14:56

I am reviewing a new construction project - 48 townhomes that will be kept as rentals.  Market rent is $1,500/mo, construction budget is $145k/unit.  I just dont see how these sort of deals pencil out.  Do developers inflate costs to maximize borrowing power or what am I missing??

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