My wife and I have some rentals all ready fond some land that we can build a 10 family on is this hard to do or is it better to just buy one. They is not a lot around here everyone buys them up to fast don't know if it would cost way to much. Wondering if anybody had did this. Thank
Buying land, getting zoning permits, building permits, and building a 10 unit is probably more expensive than buying and rehabbing a multi-family. Getting financing for an existing building is easier because there is already financial data that you can use to determine value. Also, by building a 10 unit building, you are adding inventory to your market. Supply and demand. If you increase the supply, it can effect rents. I doubt 10 units will crash the local market, but 1000 would have a bigger effect. Buying is probably cheaper, but if there is no inventory in your market, building may be your only alternative.