I am in the beginning stages of planning out developing a 5.5 acre tract I just purchased for building new construction duplexes and was hoping I could get some good advice. A little background on the area: it is in a smaller East Texas town that has a great school district that attracts a lot of families. It is in a neighborhood type atmosphere that has road frontage on two sides and I am thinking 8-10 2-3 bedroom higher end duplexes. The land is deep so it will leave a lot of vacant land behind the units so I am considering dog park, playground, walking trail Etc for attraction.
My first question is what info do I need to gather and where can I collect the info on making sure it's a smart investment.
It has rural water and they are not allowing any new connections to sewer so what are my septic options? If I do aerobic system it will require approximately .6 acres per unit for sprinkling area which will in turn limit my duplexes to a max of 8 and cost about $6k per unit.
2 or 3 bedrooms and with or without garages: how to determine. We do not get snow but a lot of the new units in the area are going to higher amenities which includes 1 car garage, granite , etc. Vinyl flooring or tile?
Best way to finance and what a good note would look like.
Any and all feedback would be appreciated!
@Joe Ferguson Hey Joe! Sounds like a lot of good Fun. You have asked some good questions and some of the new construction builders can weigh in. Too bad about the sewer tie-in limit but aerobic systems are not bad you just have to maintain them and have service contract on them. You might get some idea from the guys that have Mobile Home Parks with rural water. I don't think you have to have individual systems per unit that way. Another idea that I have wanted to look into is utilizing an underground network of soaker/drainage lines that keep you from needing a lot of area for sprinkler coverage. It all depends on the quality and type of soil you have 2 feet underground. Your land drainage has a lot to do with how well it drains off surface moisture which includes your aerobic system sprinklers as well.
I know that people are putting in duplexes out of cities and doing very well. Give me a call and i will give you some areas of these units. Best of luck and please ask away if you have questions.
A lot of counties in Texas only allow one septic system per acre, so you may be forced to put in a large commercial septic instead of a lot of individual ones. Have you had a septic designer lay out the options for you yet? They would also check percolation rates as part of that which influence design and tank sizes. They're not terribly expensive (e.g. $500 or so) and will answer all your questions. Have you asked the city if they have a timeline to allow new connections to the sewer? You should plan to convert to that at some point, or if it's within 12-24 months would even postpone development potentially. For septic you can register with the Texas PUC to pass through sewer charges based on the tenants water usage so all is not lost recovering the run & maintain charges.
@Joe Ferguson Joe, I replied to one basic area and wanted to put my two cents in overall. If you are planning upper scale or even basic multi family, I would recommend doing all 3 bedroom units. Since you are going new construction, the difference in cost between 2bed and 3bed is not that much and the ability to get tenants for 3 bed is much easier and therefore more income capability.
Your first question was about what and where info should you go after. 1st, is this community growing in population? Is there a shortage of housing especially in rentals? What is the available rents for your type of housing? Will they cash flow based on new construction cost? Is there any business in the immediate area or do folks have the ability to commute to work from there? Is there any news happening in that immediate area? That is a start and you have to research everything. Google, city-data, newspapers, school enrollment type and growth,
PM me, I'm into new economic innovative construction. This designer will give you more bang for your dollar and cost you less and is much faster to build and complete. I could layout your development.