Short Plat with Duplexes
Hey guys,
Been a long time follower and lurker here at BiggerPockets and I am finally pulling the trigger on my first deal. In my area, Spokane WA, the market is very tight and difficult to get a property that pencils that doesn't need a ton of work. Since I built my own home 10 years ago, I am not afraid of construction projects so started exploring that as an option.
We found a lot to build on but I didn't care for the numbers because of the land cost and duplex zoned property is very hard to find in the area so we kept looking.
I am now under contract for a house with 1.3 acres that is zoned multifamily or 22 dwellings per acre. I have thought of going high density as the plan allows but I like the idea of a community of duplexes. I can lay it out so I have 8 duplex lots that will cost roughly $20k each on the high side after short plat is finished and the existing house is sold off. Total cost of brand new duplex and it's parcel will be ~$270k. Rent in the area is $1100-$1250 for similar sized units.
I could put 4 quad plexes and a triplex on the parcel and get 19 units instead of 16 but rent would be more like $1000 per unit per month and it doesn't seem like it would have the same feel as a duplex community.
I'd appreciate any thoughts or tips! What do you think of the final numbers? I realize considering 50% expenses it doesn't look as favorable but it is brand new so would expenses be that high initially? Taxes here are quite low (<$1000 a year).
Thanks,
Isaac