Hi everyone. I am looking to put some sweat equity into a colleagues development portion of his business. He has come up through the ranks as a wholesaler, then fix and flip, and now targeting missing middle new construction/development deals.
I'm beginning to research GCs/investors that do this type of work, and figured it'd be worth exploring the BP network.
If you deal in this area directly, or have a connection I could speak to, that would be much appreciated.
At the end of the day I am trying to get round number hard cost estimates on 2-4plex/Townhomes. Thanks in advance.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
2y
@Jack Berg another approach is to search the MLS and locate the product for sale or sold that you are wanting to do. Do some research and find the agents and owners of those deals and reach out to them. At the same time you can go to the local building departments and find the plans for the projects and get the GC info from that as well as the architect. The architects also probably have a pretty good handle on the costs of construction because their plans are getting created for a certain price point.
If you don't find what you are looking for, then it is a very solid bet that it's not economically viable. I really haven't seen any build to rent 2-4 unit properties. Everything I've seen is townhouses that were built to be sold directly to consumers and when the units couldn't sell individually, the developers cut their losses and sold to out of town 1031 buyers looking for an easy button. I have no idea if they are getting the proforma rents peddled by the listing agents. I have my serious doubts though.