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Jason Johnson
  • Real Estate Agent
  • Osseo, MN
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Cost to build 4 Plex in Minnesota

Jason Johnson
  • Real Estate Agent
  • Osseo, MN
Posted Feb 22 2018, 13:56

Im located in Minnesota and looking to build a 4 plex.  Can someone tell me an around about cost for a 3 bed 2 bath new construction 4 plex would cost? About 1200 sqft per unit.

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James W.
  • Minneapolis, MN
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James W.
  • Minneapolis, MN
Replied Feb 22 2018, 14:41

I have searched the forums on here and there is not a lot of recent discussion.  Some have estimated 80-100/sqft, but I believe those comments assumed the land was already owned.  I own a single family home that as now zoned R4 so it was something I was considering but it doesn't seem my lot will allow for a R4 property to be build on it to meet the minimum zoning limits.  I would need to utilize the existing structure which won't work for more than 2 units.  

I'm not sure what location you have in mind, but you can buy plans online and you could always see if you can get bids from builders.  

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Jessica Grewe
  • Investor
  • Rochester, MN
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Jessica Grewe
  • Investor
  • Rochester, MN
Replied Feb 22 2018, 16:48

My dad who is a carpenter always says figure at least $100 sq ft.  That is only the cost of building, not the cost of the land.  Best of luck!

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Ryan Schroeder
  • Rental Property Investor
  • Saint Paul, MN
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Ryan Schroeder
  • Rental Property Investor
  • Saint Paul, MN
Replied Feb 22 2018, 16:58

Costs can vary a lot depending on level of finish, what community you are building in (fees can vary a lot) etc but for purposes of a very broad brush I'd use $120/SF plus soft costs (architect, engineer, survey, legal etc at another 15% over hard construction plus land, plus site work.  You also need to add costs for common areas and construction contingency.  Don't be shocked if you are approaching $1M all in.  There might be cheaper alternatives.

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John Woodrich
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  • Flipper/Rehabber
  • Minneapolis, MN
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John Woodrich
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  • Flipper/Rehabber
  • Minneapolis, MN
Replied Feb 22 2018, 18:34

I can't imagine it every costing $1M to build a 4 plex in MN....

I have been looking at this pretty hard for myself, due to prices or lack of supply it seems that it would be cheaper to build a multi-family property in some areas than it would be to purchase one.

In looking at a recent appraisal I have - under the cost approach they estimated rebuild cost at $85 per sqft (tired building).  I think this is really closer to $100-$120 if you were to hire it out not being cheap but not going overboard on finishes.  You would also have to source the land which would vary based on location.

With the guys I have I would only need to contract out the foundation and the licensed trades and my guys could complete most of the work saving me the developer cut and contractor profit.  I have plans to get a builder's license this summer but it seems like everything gets pushed out.  We will see if I have time to put towards this.

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Mace Wescott
  • Specialist
  • Stillwater, MN
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Mace Wescott
  • Specialist
  • Stillwater, MN
Replied Feb 23 2018, 12:19

In my conversations with builders, I was finding over $150 per sqft outside of the metro area and closer to $200 in the metro area.  It depends on type of materials and finishes.  The main problem is finding the trades people who can do the work.

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John Woodrich
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  • Minneapolis, MN
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John Woodrich
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  • Flipper/Rehabber
  • Minneapolis, MN
Replied Feb 24 2018, 08:40
Originally posted by @Mace Wescott:

In my conversations with builders, I was finding over $150 per sqft outside of the metro area and closer to $200 in the metro area.  It depends on type of materials and finishes.  The main problem is finding the trades people who can do the work.

I would guess these are not rental grade multi-family properties. These rates may work for newer residential but it would depend on the area.  You will need a lot better finishes building a house in Wayzata than you would in Isanti.  

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Mace Wescott
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  • Stillwater, MN
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Mace Wescott
  • Specialist
  • Stillwater, MN
Replied Feb 26 2018, 10:54
Originally posted by @John Woodrich:
Originally posted by @Mace Wescott:

In my conversations with builders, I was finding over $150 per sqft outside of the metro area and closer to $200 in the metro area.  It depends on type of materials and finishes.  The main problem is finding the trades people who can do the work.

I would guess these are not rental grade multi-family properties. These rates may work for newer residential but it would depend on the area.  You will need a lot better finishes building a house in Wayzata than you would in Isanti.  

I was using those numbers to get a rough estimate for properties from SFR up to a quad, but yes the $ per sqft should be less as a rental and will vary per location.